March 19, 1989

LEAD: Israel and Egypt are not celebrating their 10 years without war.

LEAD: President Bush is developing a highly engaged management style that is being praised in Washington as a healthy departure from the detached style of the Reagan years.

LEAD: WHEN Roman Catholic priests retire from their ministries, they often are faced with only limited choices. Many move in with family, or even live on in their rectories.

LEAD: Twenty years ago, E. William Judson opened a real estate office on the East Side of Manhattan and began leasing space for the many midtown galleries that sprang up as New York became the art capital of the world. As he leased more and more space for galleries, he noted that the typical gallery used half its space for storage, making such storage increasingly expensive as rents shot up.

LEAD: BY taking the oath as Secretary of Defense last week, Dick Cheney entered a Pentagon that has undergone a transformation since the heady days of the early 1980's when President Ronald Reagan delivered a series of ever fatter military budgets. Unlike Mr. Reagan's first Defense Secretary, Caspar W. Weinberger, President Bush's first Pentagon chief will preside over a department that can count only on the prospect of budgets that are lean by the standard of the