LEAD: One of the longest criminal trials in the United States ended abruptly today with the acquittal of 20 defendants accused of making up the entire membership of the Lucchese crime family in New Jersey.

ALL 20 ACQUITTED IN JERSEY MOB CASE

LEAD: A Federal judge today barred Eastern Airlines from dismissing 4,000 workers and then threw Eastern and the airline industry into confusion by leaving open the question of whether he will allow the airline to slash its flight schedules next week.

EASTERN AIRLINES BLOCKED BY JUDGE ON LAYOFFS PLAN

LEAD: Two Hungarian-born Swedish brothers who were arrested this week when Western officials broke up a major espionage ring have admitted working for the Hungarian intelligence service, the Swedish authorities said today.

American Contact With Spy Ring Was in '74, Investigators Are Told

LEAD: Clattering in toward central Gdansk from Nowy Port to the northwest, the No. 10 tram lurches along right under the sooty brick walls and idle, rusty cranes of the Lenin Shipyard.

In Gdansk, a Growing Sense of Futility

LEAD: For more than a week, George Bush has been taunting Michael S. Dukakis for vetoing a Massachusetts law that would have required teachers to lead their classes in the Pledge of Allegiance. Governor Dukakis has retorted that such a law would be unconstitutional, and that Vice President Bush would not be qualified to be President if he had signed it.

Symbolism, More Than Legal Precedent, Is the Issue in the Bush and Dukakis Clash

INSIDE

LEAD: A Federal appeals court yesterday affirmed a lower court's finding of contempt and the imposition of fines against the City of Yonkers and four members of the City Council who have blocked compliance with a court-ordered housing desegregation plan.

Panel Upholds Contempt Finding But Curbs Fines Against Yonkers

LEAD: An independent prosecutor said today that she would not seek criminal charges against a former senior Justice Department official who had been accused of misleading Congress in 1983 about the handling of Environmental Protection Agency documents.

Special Prosecutor Drops E.P.A. Case Without Indictment

LEAD: The Federal Home Loan Bank Board announced today that it had arranged to merge nine more insolvent saving institutions with healthy ones. It said it had committed almost $1 billion in assistance to the transactions.

U.S. Promises $1 Billion for Deals To Save Nine Savings Institutions

LEAD: ''Once the Yonkers City Council approved the terms of the Consent Judgment, the Council became obligated to carrying out its commitments. If a member of the Council is unwilling to abide by such commitments, his option is to decline to serve on the body that is bound, not to act in defiant disregard of the commitments and the federal court judgment that memorializes them.

Quotation of the Day

LEAD: Poland's leaders today proposed direct negotiations with representatives of ''different social groups'' and with ''workers' representatives'' to defuse the labor confontations shaking the country.

Warsaw Is Proposing Talks To End Remaining Strikes

LEAD: A black union organizer and opponent of apartheid who was detained without charge for 26 months died in a hospital today, three days after collapsing in his prison cell, the police said.

Detained Apartheid Foe Dies In a Hospital in South Africa

LEAD:  International 2-4, 26  Two brothers arrested in Sweden have admitted working for the Hungarian intelligence service, Swedish officials said. The Hungarian-born brothers were arrested when Western officials broke up a spy ring. Page 1  A growing sense of futility in Gdansk has set in as a strike continues at the Lenin Shipyard.

NEWS SUMMARY

LEAD: The peace talks between Iran and Iraq ran into potentially serious trouble today when an old dispute resurfaced between the two countries over the ownership of a waterway, diplomats and United Nations officials said.

Gulf Peace Negotiations Hit A Potentially Serious Snag

LEAD: An obituary Aug. 18 of Franklin D. Roosevelt Jr. omitted two survivors. They are his brothers, James, of Santa Ana, Calif., and Elliott, of Indian Wells, Calif.

Corrections

LEAD: Large crowds gathered Friday at the Shwe Dagon Pagoda in Rangoon, where speakers called on the army to support the peaceful but leaderless insurrection that has turned much of the Burmese population against the Government.

BURMA ARMY URGED TO AID PROTESTERS

LEAD: A report in the Washington Talk Briefing column yesterday on a speech by Richard F. Schubert, president of the American Red Cross, misidentified the organization he addressed in some copies. It is the World Jewish Congress.

LEAD: In the Dining Out column in Weekend yesterday, an incorrect star rating was given for the Gotham Bar and Grill, 12 East 12th Street. The restaurant received a three-star rating when it was reviewed on Oct. 4, 1985.

LEAD: Talks between North and South Korea ended in a deadlock today, with the two sides saying they had no plans to resume meetings until after the Olympic Games in Seoul are over in October.

Korean Talks Adjourn in a Deadlock

LEAD: Vice President Salvador H. Laurel and opposition leaders today announced the formation of a new coalition to challenge President Corazon C. Aquino.

Filipino Opposition Leaders Form Anti-Aquino Coalition

LEAD: The Soviet Union has expanded the powers of its Interior Ministry troops, granting them broader authority to bear arms, suppress public demonstrations and enter private homes in pursuit of criminals.

Soviet Interior Ministry Troops Get More Power to Quell Protesters

LEAD: A Company Briefs listing in Business Day on Thursday, about the export of microwave ovens to 11 European countries, incorrectly described the plan. The exporter is the Sharp Electronics Corporation, the United States operation of the Sharp Corporation of Japan, and the ovens will be American-made.

LEAD: A question in the News Quiz last Saturday incorrectly described the succession to President Mohammad Zia ul-Haq of Pakistan. After General Zia's death on Aug. 17, Gulam Ishaq Khan, the leader of the Senate, became Acting President under the Pakistani Constitution.

LEAD: A senior official of the Palestine Liberation Organization said tonight that the group had decided to declare the Israeli-occupied West Bank and Gaza Strip independent and to form a government in exile for the territories.

Arafat Aide Says P.L.O. Will Form Exile Regime

LEAD: Talks on a timetable for withdrawal of Cuban troops from Angola were suspended today to allow negotiators to consult their governments. The negotiators, from Angola, Cuba and South Africa, agreed to reconvene here in the week of Sept. 5. Earlier, the parties had agreed to set the timetable by Sept.

Angola Talks Are Suspended

Alexa Ellesse PenaVega is an American actress. She is known for her roles as Carmen Cortez in the first four Spy Kids films and Julie Corky in the 2004 film Sleepover. In 2009, she starred as the title character Ruby Gallagher in the ABC Family series Ruby & the Rockits.

August 27, 1988

Headlines from August 27, 1988

ALL 20 ACQUITTED IN JERSEY MOB CASE

EASTERN AIRLINES BLOCKED BY JUDGE ON LAYOFFS PLAN

American Contact With Spy Ring Was in '74, Investigators Are Told

In Gdansk, a Growing Sense of Futility

Symbolism, More Than Legal Precedent, Is the Issue in the Bush and Dukakis Clash

Billboard 200

Tracy Chapman

Hysteria

Roll With It

Appetite For Destruction

He's The D.J.; I'm The Rapper

Notable Births

Historical Context for August 27, 1988