November 29, 1990

The Commerce Department reported today that the economy expanded at a 1.7 percent rate in the third quarter, a tenth of percentage point less than previously estimated. But private analysts said the figure masked the progressive economic contraction that started in the late summer. The third quarter "started fast but died at the finish line," said Stuart G. Hoffman, chief economist for the Pittsburgh National Bank. A solid advance in national output in July, he said, appeared to be followed by a flat August and by rapid deterioration since then.

When Mayor David N. Dinkins unveiled his ambitious public safety proposal two months ago, some cynical New Yorkers cavalierly dismissed it as a sham. Did they goof? Since then, crime has not abated. Nor has New York City hired even one of the additional police officers proposed by Mr. Dinkins. But merely by presenting so comprehensive a program, the Mayor managed to achieve one goal that had eluded him for months: he finally stanched the political hemorrhaging that resulted from his seeming indifference in responding to one shocking crime after another while he patiently awaited the recommendations he commissioned from criminal-justice experts.

GEORGE KREIDLER, 71 years old, drives a Chevy Cavalier with "A Touch of Class" on his license plate. "You have to have verve," he said. A former linebacker for the Green Bay Packers with the shoulders to prove it, Mr. Kreidler retired six years ago after 31 years supervising the construction of oil refineries and chemical and nuclear-power plants for the Bechtel Corporation.

Ban on Noriega Tapes Lifted A Federal judge lifted his ban on broadcasting taped conversations between Gen. Manuel Antonio Noriega and his lawyers. Page A22. What's Left for Daily News? The Daily News management may soon be facing some tough choices, including shutting the paper down. News analysis, page B1. Germans to Feed Russians Germany is starting emergency food aid for the Soviet Union. American officials are considering an emergency medical shipment but blame distribution problems, not production, for Soviet food shortages. Page A20. Briton Names Cabinet John Major, succeeding Margaret Thatcher as Prime Minister, rearranged the Cabinet and pledged to build on her achievements. Page A12. New Ground on Ethics Issue Settling a lawsuit, a medical center instituted a policy on the treatment of severely ill pregnant women and their fetuses. Page B14. Mussel on the Move The zebra mussel, an aquatic pest that clogs the intake pipes of power plants, has been found in the Hudson River for the first time. Page B1. See You Later, Dinosaurs The American Museum of Natural History began closing its renowned dinosaur exhibitions for a five- year renovation project. Page C17.

Department stores are not alone in having end-of-the-year holiday sales. Many of the nation's largest commercial banks, hurt by losses on real estate loans, are trying to sell big chunks of their businesses, like credit card operations, business loans and even branches.