INSIDE

LEAD: Any moment now, the Government's bookkeepers will record a noteworthy passage in the Federal accounts: The interest the Treasury pays on the $2 trillion national debt is itself about to exceed the huge Federal budget deficit of $150 billion. And from here on, most calculations show, the interest bill will continue to grow.

Interest on U.S. Debt to Top Budget's $150 Billion Deficit

LEAD: The last major bank in Texas that is controlled by Texans said for the first time today that it needed Federal assistance to survive.

U.S. RELIEF SOUGHT FOR LAST BIG BANK OWNED BY TEXANS

LEAD: In a ruling last month on a filter that contaminated water instead of purifying it, the Federal Trade Commission cast light on how Government regulatory agencies with overlapping jursidiction failed to prevent Norelco from marketing a product containing a probable carcinogen.

Slipping Through the Cracks: The Filter That Contaminated

LEAD: Smiling, clapping, cheering and waving Chilean flags, hundreds of thousands of people converged on a huge park here today to demand the early resignation of Gen. Augusto Pinochet.  General Pinochet, whose bid to extend his presidential term until 1997 was rejected in a plebiscite on Wednesday, can remain in office until a successor is chosen.

Pinochet's Triumphant Opponents Urge Him to Yield Presidency Soon

LEAD: Democratic and Republican officials have been pressuring independent political action committees to stop seeking money for campaign advertising, even ads in behalf of their party's Presidential candidates.

Campaign Finance; Parties Ask Outside Groups To Stop Raising Ad Money

LEAD: The debate about the enduring crisis in Yugoslavia has moved into the streets, where the many strands of the nation's knotty problems are being argued by an increasingly assertive people.

Yugoslavs Reel Under Weight Of Their Ever-Growing Crisis

LEAD: The nation's unemployment rate fell two-tenths of a point in September, to 5.3 percent, the Labor Department reported today. At the same time the slowdown in creating new jobs continued, easing fear that the economy would expand too rapidly.

NEAR 14-YEAR LOW

LEAD: A Federal licensing board's recommendation that the Shoreham nuclear plant receive a full-power operating license was overturned yesterday by an appeals panel of the Nuclear Regulatory Commission.

Shoreham License Recommendation Is Overturned

LEAD: ''These figures tell the real story that people can understand. They mean paychecks and school clothes and families that can plan a brighter future.

Quotations of the Day

LEAD:  International 3-5  Early resignation of Chile's leader, Gen. Augusto Pinochet, was demanded by a jubilant crowd in Santiago. But the general showed no sign of resigning before the Constitution requires. Page 1  News analysis: After Chile's vote to end Gen. Augusto Pinochet's rule, it may face a more difficult task: sorting through many political options and at least two dozen political parties to find the next President.

NEWS SUMMARY

LEAD: The United States will send bomb-disposal experts and training material to Pakistan to teach Afghan refugees how to disarm and destroy millions of mines and booby traps scattered over the Afghan countryside, a senior Reagan Administration official said today.

U.S. to Help Train Refugees To Destroy Afghan Mines

LEAD: Bavarians said farewell to Premier Franz Josef Strauss today with a grand display of regal pomp and folk tradition that was a throwback to the days of the Bavarian monarchy.

In Bavaria, A Requiem For a King

LEAD: A plane carrying workers being rewarded for recent good performances crashed into a hotel in Shanxi Province on Friday, killing 42 of the 46 people on board, an official daily said today.

42 Sightseers Are Killed In Chinese Plane Crash

LEAD: An article on Wednesday about job-discrimination rules for the staff of the House of Representatives cited one provision erroneously. There is no provision permitting a House member to refuse employment to people because of disagreement with their way of life. On the Washington Talk page on Thursday, because of an editing error, an article about the politics of AIDS repeated that misstatement.

Corrections

LEAD: An article in Business Day yesterday about a suit by the Maryland Deposit Insurance Corporation against former executives of the Community Savings and Loan of Montgomery County misstated the number of defendants in some editions. A jury held six former executives liable for $112 million. John D. Faulkner, another former official of the defunct savings institution, had previously agreed to a settlement of the claim against him.

LEAD: Dozens of people have apparently been killed and more than 900 wounded here in four days of demonstrations and rioting by youths angered by economic austerity measures and rising prices.

Algiers Riot Toll Put at Dozens Dead and 900 Hurt

LEAD: The About New York column on Tuesday, about the revival of a literary magazine at Walton High School in the Bronx, misattributed ''Lollipop Kiss,'' a poem in the magazine. The poem was submitted by a student, Deneen Fripp, who says she was credited as the author through a misunderstanding. It was written by Dorothy E.

LEAD: After defeating Gen. Augusto Pinochet in this week's plebiscite, Chileans may face a more difficult task: sorting through the diverse political options and finding the next President.

After the Vote: A Role for Pinochet?

LEAD: While the representative of Burma expressed the military Government's commitment to hold ''free and fair'' general elections in an address to the General Assembly, a new opposition group appealed today to the organization to withdraw recognition from the ''illegal and barbaric regime.''

Burmese Regime Faulted at U.N.

LEAD: With a whiff of scandal, a new opera house is to open in Cairo next week. The event has been preceded by much digging and scrubbing within its grounds, and much debate over where Egypt is heading with a cultural heritage that dates to the Pharaohs.

Phantom No More, an Opera House Comes to Life

LEAD: The United States has sent a message to Iran disavowing any connection to private intermediaries who may be trying to negotiate on behalf of American hostages held in Lebanon, a senior Administration official said today.

U.S. Disclaims Link to Private Hostage Efforts

LEAD: Hundreds of children were vaccinated against polio today in the first stage of a nationwide campaign to immunize all Israelis up to the age of 40 against the disease.

Israeli Children Given Vaccinations for Polio

YUGOSLAVIA: At a Glance

LEAD: Eugene V. Hasenfus, the mercenary who spent three months in a Nicaraguan jail after his contra supply plane was shot down, has filed a $135 million damage suit against two men and two companies linked to the Iran-contra arms deals.

October 8, 1988

Headlines from October 8, 1988

INSIDE

Interest on U.S. Debt to Top Budget's $150 Billion Deficit

U.S. RELIEF SOUGHT FOR LAST BIG BANK OWNED BY TEXANS

Slipping Through the Cracks: The Filter That Contaminated

Pinochet's Triumphant Opponents Urge Him to Yield Presidency Soon

Billboard 200

Appetite For Destruction

Hysteria

Tracy Chapman

Cocktail

Simple Pleasures

Historical Context for October 8, 1988