December 20, 1989

LEAD: New York State's highest court struck down a major provision of the state's harassment statute today, ruling that abusive and obscene language represented a constitutionally protected form of free speech.

LEAD: The leaders of the two Germanys met today for the first time since the East fell into the throes of protest and change, and in a symbolic reconciliation agreed to reopen the Brandenburg Gate in Berlin and introduce free movement across their border for all Germans by Christmas.

LEAD: Lawyers for Kohlberg, Kravis, Roberts & Company told a group of bondholders yesterday that it was prepared to seek Chapter 11 bankruptcy protection for the Hillsborough Holdings Corporation, the company it formed to acquire the Jim Walter Corporation last year for $2.4 billion. A Hillsborough representative confirmed the report.

LEAD: The White House today condemned Rumania's continuing crackdown on political demonstrators as ''brutal'' and said the United States was considering teaming up with its Western allies and Moscow to develop some kind of coordinated response.

LEAD: A Federal judge ruled that testimony that Oliver L. North gave at his trial could not be used to convict a former superior, John M. Poindexter, who also faces charges related to the Iran-contra affair. The ruling was a setback to the Government's prosecution of Mr. Poindexter, since Mr. North had said at his trial that he acted at the behest of his superiors.