March 9, 1991

Two years after large numbers of Soviet Jews began moving to Israel, this nation's warm hopes and fond dreams for a comfortable union of two Jewish peoples are running afoul of cold economic reality. The combination of limited resources, poor planning and mass immigration -- 220,000 Soviet Jews have moved to Israel since the numbers began growing in March 1989 -- have seriously reduced the country's ability to absorb the newcomers.

Allied intelligence agencies have intercepted communications from Iraq's military command in Baghdad authorizing the use of chemical weapons against anti-Government rebels in the cities of Najaf and Karbala, Bush Administration and allied officials said today. Bush Administration officials said tonight that they had warned the Iraqis not to use the chemical weapons.

The nation's employment picture deteriorated significantly last month, with payrolls shrinking and the jobless rate rising to its highest point in nearly four years. Hoping to give the economy a boost, the Federal Reserve responded to today's latest news of worsening recession by lowering an important interest rate another notch. It was the second time in two months that the central bank cut rates right after unfavorable employment statistics were released.

Fernandez Plan Questioned While in Miami, New York's School Chancellor gave teachers more power. A study says that morale rose, but not performance. Page 25. A Sad End for a Short Life Neighbors were trying to fathom why a Bronx infant, found dead next his crib, had been left alone without food or water for five days. Page 25. Crucial Talks for Pan Am The airline could face an imminent shutdown if British and American negotiators fail to agree on a transfer of routes worth $290 million. Page 29.

After all the remarkable sights and sounds from the Middle East, the most amazing sight of all for many of the troops of the 24th Mechanized Infantry Division was the homecoming -- the flag-waving, horn-honking crowd that turned out to greet them in the early morning hours and again this afternoon. "War is good and war is bad, but this war has brought out so much patriotism in this country it's unbelievable," said Robert Teague, a 23-year-old communications specialist with the 24th, who was one of 104 troops who returned on the first plane back from the Middle East. "I don't think anyone expected anything like this."