November 23, 1991

Businesses in the New York City region that are waiting for a national recovery to lift them out of their doldrums are looking in the wrong direction, several economists say. The downturn here, they say, has less to do with the nationwide slump than with the wrenching changes being forced on many of the industries for which the city is a center. The large New York banks have watched new competitors from both their own and other industries, often based elsewhere, come into fields they have traditionally dominated. Television broadcasters have been hurt by deregulation, which forces them to compete against cable and other media companies for audiences and advertising dollars.

Bush Administration officials today backed away from their proposal on defining America's wetlands after Federal scientists concluded that it could open nearly half of the currently protected areas to development. Any proposal will be revised to honor President Bush's 1988 campaign pledge that there will be no net loss of wetlands while he is President, said David Beckwith, a spokesman for Vice President Dan Quayle. Mr. Quayle is chairman of the Council on Competitiveness, whose staff members wrote the most recent revision of the wetlands definition. Another Policy Shift Critics of the Administration's environmental policies said the latest action appeared to be a setback for Mr. Quayle's council, as its staff had revised the guidelines proposed by four Federal agencies to make it more difficult for wetlands to qualify for protection. The aim was to help relieve the wetlands rule on industries like oil and land development.

In Senate Bank Bill, Love Letters Home Tucked away in the complex banking bill approved by a handful of senators on Thursday are a host of provisions written with specific home-state constituents in mind, many inserted minutes before the vote. Page 35. Ewing + Bonilla = Zillions The Knicks and Patrick Ewing signed a deal that will make Ewing the highest-paid player in team sports, while the Mets made a multiyear offer to free agent Bobby Bonilla. Page 29.

The California Air Resources Board voted yesterday to adopt new standards on gasoline that will require the most significant changes in fuel since the Federal Government ordered the removal of lead from gasoline nearly 20 years ago. The board said the new fuel would be "the world's cleanest," reducing the emissions of smog-forming chemicals by 30 percent to 40 percent compared with current blends.

The United States announced today that it had invited Israel, the Palestinians and the Arab states to resume their peace talks in Washington on Dec. 4, even though Israel continued to maintain that the talks should be held in the Middle East. Israeli officials said they were irritated because the invitations were sent out Thursday night, before Prime Minister Yitzhak Shamir met with President Bush this morning to discuss the site issue. Mr. Shamir said he would respond to the invitation only after discussing the matter with his Cabinet next week.