January 1, 1990

LEAD: When Westley Allan Dodd was arrested in November and charged with killing three young boys in this Columbia River community, his case provided critics of the legal system with a tragic demonstration of their argument that the law has failed to protect society from sex offenders.

LEAD: Despite some seemingly spectacular successes, the drug war in South America is not going well. Critics say the American military attack on Panama, justified in part as an anti-drug initiative, has only fragmented what is already a largely ineffective effort.

LEAD: In Japan, Year of the Horse Japanese observed a national New Year's ritual combining a Times Square-like countdown and Eastern mysticism. Page 3. Worry Over Khmer Rouge Prime Minister Hun Sen of Cambodia said the Khmer Rouge had obtained American arms from non-Communist guerrilla factions.

LEAD: With the impasse over the fate of Gen. Manuel Antonio Noriega entering its second week, the new President of Panama and his Attorney General disagreed today over whether to file charges against the deposed strongman or leave the question of his prosecution to the United States.

LEAD: ''Personally I'm optimistic on everything,'' said 10-year-old Chris Park, pausing to contemplate the minting of a crisp new decade and a historic changeover at City Hall -New York's first new Mayor in his lifetime.

LEAD: Senator Sam Nunn, the leading Democratic figure on military issues on Capitol Hill, says the United States should seek deeper cuts in American and Soviet troop strength in Europe than the Bush Administration has proposed in arms negotiations.

LEAD: Confronted by growing demands that the Communist Party dissolve itself, top officials of this country's old order say they will call a special congress to dismantle the disgraced party even before free elections are held in April.

LEAD: At the stroke of midnight, Poland becomes the first Eastern European country to leap into the capitalist era.

LEAD: Because of holiday production requirements, The Times is printed today in two sections.

LEAD: Morocco appealed for help today in its struggle to keep a 230-square-mile oil slick away from its coastline and to halt the spill that began when an Iranian tanker was damaged in an explosion nearly two weeks ago.

LEAD: INTERNATIONAL 2-9 The Communist Party in Rumania will dismantle itself during a special congress that top officials of the ousted Government will call before free elections are held in April. Page 1 Helicopter pilot describes Ceausescu's escape attempt 6

LEAD: President Corazon C. Aquino announced changes in her Cabinet today in the aftermath of the military mutiny against her Government earlier this month.