March 14, 1990

LEAD: Maurice Saatchi said today that he and his brother, Charles, were cutting their $1 million salaries by 30 percent and that the other directors of the Saatchi & Saatchi Company were taking 10 percent pay cuts. But angry shareholders at the annual meeting here of the giant advertising and communications company said the cuts were not deep enough.

LEAD: Political leaders, including President Bush and education officials in at least 19 states, are promoting ''school choice'' as a cure for what ails public education. Give people the freedom to choose among schools, the argument goes, and the resulting competition for students will force schools to shape up or shut down.

LEAD: It was an ordinary Saturday morning here at the hilltop home of Representative John G. Rowland. Upstairs, Julianne, 9 months old and named for Bruce Springsteen's ex-wife, screamed for a bottle. Downstairs, R.J., 3 years old and named for his granddad, wiggled under his father's arm and cried at the mention of putting on his ''p-a-n-t-s.

LEAD: Bruno Bettelheim, the psychoanalyst whose deep empathy for children led him to a lifelong effort to heal the emotional wounds of early life, died yesterday at a retirement home in Silver Spring, Md. He was 86 years old.

LEAD: Brazil's central bank closed the nation's banks late today for the rest of the week until an emergency economic package is announced by President-elect Fernando Collor de Mello.

LEAD: Bush Chides Congress On Aid to Panama President Bush voiced impatience with Congress, saying it had failed to move swiftly on aid for Panama, and urged lawmakers to act immediately to strengthen the new governments there and in Nicaragua. Page A14. Peace Move in El Salvador Salvadoran guerrilla leaders said they would stop attacking most nonmilitary targets in a move to pave the way for renewed peace talks with the Government.

LEAD: SETTING aside a week or two of vacation time is all but impossible these days for Doris Bader, a printing services consultant in Highland Park, N.J. ''I just keep putting it off and off and off,'' she said.

LEAD: Chancellor Helmut Kohl of West Germany said today that East Germans would be able to exchange their personal savings at a one-to-one rate for West German marks, but that this rate would not apply to East German marks held by businesses or other institutions.

LEAD: The Leipzig Trade Fair, for decades a dull Communist showcase of East German industry, has been transformed this year into a bustling forum of East-West deal-making. With the recent democratic reforms in East Germany and hopes of strong growth fueled by the coming unification of the two Germanys, Western companies have flocked in record numbers to the one-week Leipzig fair, which began on

LEAD: Israel's coalition Government collapsed today when Prime Minister Yitzhak Shamir dismissed Finance Minister Shimon Peres, the leader of the Labor Party, prompting the rest of Labor's Cabinet ministers to resign.

LEAD: In a strategic foray in the antacid wars, the Procter & Gamble Company announced plans yesterday to take over marketing and distribution in the United States of Maalox, the star antacid of the Rorer Group Inc.

LEAD: A New York City program to renovate several thousand apartments for the homeless and the working poor is seriously behind schedule and at least $50 million over budget, city officials said yesterday.