January 5, 1991

Iraq accepted the Bush Administration's offer tonight for a high-level meeting on Wednesday in Geneva, at which Iraq's Foreign Minister said he would press for "justice and fairness" for the Palestinian cause. In a statement read over state-run television and released by the official Iraqi press agency, Foreign Minister Tariq Aziz was quoted as saying he had accepted the offer to meet Secretary of State James A. Baker 3d despite the "arrogant statements" and "bad intentions" that accompanied the invitation. [ Text of the Iraqi press agency report, page 5. ]

The nation's labor market deteriorated further in December, the Government reported today, but the figures were markedly less gloomy than many people had expected. In the first comprehensive reading of the economy's December performance, the Government said the unemployment rate climbed two-tenths of a point, to 6.1 percent, its highest level since mid-1987, and the number of payroll jobs fell for the sixth straight month.

Cars, hair dryers and a profusion of other American products carry warranties that promise they are free of defects. Now, the New York City Schools Chancellor, Joseph A. Fernandez, wants to place warranties on the students his high schools turn out. Under a plan being developed by his office, any employer who finds that a high school graduate cannot read, write or calculate proficiently can return the worker to school for remedial programs at no cost to the employer or the student. The guarantee would last for a year after graduation, with the school system picking up the expense of re-educating the student, usually within its nighttime adult education classes.

After a search fraught with political embarrassment, Administration officials and party strategists said today that President Bush was expected to choose Agriculture Secretary Clayton K. Yeutter for the chairmanship of the Republican National Committee. Mr. Yeutter, who served as United States Trade Representative in the Reagan Administration, is a 60-year-old Nebraskan with a Ph.D. in agricultural economics and a resume more noteworthy for policy making than politics.

The Bank of New England Corporation, the most troubled of the nation's large banking companies, moved to the brink of collapse yesterday when it announced that it expected a large fourth-quarter loss, leaving it with no funds to absorb future loan losses. With the latest losses exceeding its remaining capital, the nation's 33d-largest banking company would be insolvent by accounting rules. Although it still has the approval of regulators to remain in business, the erosion of the company's financial strength over the last year has now reached a point where Federal regulators are being forced to decide the company's fate.