April 2, 1990

LEAD: At first glance, this seems like an aptly named small city. It is in the middle of the state and midway between New York and Boston. It is still dotted with many of the symbols of middle-class, middle-American life from the mid-20th century: homes with big porches, a roadside diner and a Main Street complete with a striped barber's pole, an old movie marquee and an Art Deco-style

LEAD: With the walls coming down in Eastern Europe, Sean O'Doherty, a Roman Catholic student at St. Mary's College, dreams of the day when the walls that separate Catholics from Protestants will tumble, too.

LEAD: The indefinite postponement of their first formal meeting has emphasized the differences in the ways President F. W. de Klerk and Nelson Mandela, the anti-apartheid leader, must maneuver to maintain support within their constituencies.

LEAD: State budget talks dissolved early this morning after an eight-hour private meeting between Gov. Mario M. Cuomo and legislative leaders broke down in a new round of angry public accusations.

LEAD: Far-sightedness in state and local government seems to be defined nowadays as anticipating next week's budget deficit forecast. In that context, a 15-month contract authorized last month by the New York City Transit Authority is positively visionary.