August 17, 1991

A resurgence of exports of manufactured goods, low oil prices and shrinking demand for imports narrowed the trade deficit in June to $4.02 billion, the lowest monthly level in eight years, the Commerce Department said today. Together with an announcement today by the Federal Reserve that output of the nation's factories, mines and utilities grew in July for the fourth straight month, the reduced trade deficit provided another indication of renewed strength in the manufacturing sector. The growing competitiveness of American manufacturers in world markets, combined with oil prices below $25 a barrel, has now produced four straight monthly deficits of less than $5 billion.

The video camera has become an important tool in investigating clashes between inmates and guards in New York State prisons, and its use is expanding. Introduced in prisons more than a decade ago, the cameras were initially mounted on walls. But these days, correction officers doubling as camera operators are routinely taping where there are no wall-mounted cameras, during inmate transfers and any unusual movements within the prisons.

Less than a month before classes begin, more than a sixth of the administrators in New York City's schools have decided to retire, and others are expected to follow them shortly. This exodus of a record number of administrators, coupled with thousands of teachers' retirements, is expected to transform the leadership of the city's schools. Education officials say the changes will likely bring short-term chaos, with schools struggling under new management on short notice, but will eventually aive younger people, and more minorities, a chance to run the schools.

Aleksandr N. Yakovlev, an estranged confidant and reform strategist of President Mikhail S. Gorbachev, quit the Communist Party today with a warning that party reactionaries were planning a vindictive Stalinist coup d'etat. Mr. Yakovlev's departure had been expected for months. But he left with a melodramatic flourish, cautioning the nation that while the party leadership was losing influence, it was nevertheless "making preparations for social revenge, a party and state coup."

President Bush said today that he would sign a bill providing extended benefits for three million people who have been out of work more than half a year but said he would block actual spending of the bill's $5.8 billion in benefits. He said at a news conference in Kennebunkport, Me., that while he sympathized with the unemployed, he would not carry out the bill because "I won't bust the budget."