February 27, 1992

When Lee A. Iacocca, the outspoken chairman of the Chrysler Corporation, demands that America take a stand against Japanese car imports surely he must not be talking about car No. 11AMRXML2D19W-C06, which rolled off the line here the other day. The car was produced by teams of Japanese workers all wearing neat uniforms with "Mitsubishi Motors" emblazoned on the back. But the sporty. bright red model is a Dodge Stealth, made by Mitsubishi, and sold in America starting at about $17,000. And the only thing that makes it seem American is the word "Dodge" etched in the front bumper. Mr. Iacocca made no mention of Mitsubishi's Nagoya plant when he visited Japan with President Bush in January, and these days people at the plant say as little as possible about Mr. Iacocca. Confused Feelings "We feel a little funny about him," Kozo Naruse, the deputy general manager, conceded the other day, shaking his head. "Here he is talking about keeping Japanese cars out of America, and every day we come to work and make very good Chryslers."

NEW YORK CITY 2 TEEN-AGERS KILLED IN BROOKLYN SCHOOL Two teen-agers were shot dead at point-blank range in the hallway of a high school in East New York, an hour before Mayor David N. Dinkins was to visit the troubled school to tell students they had the power to break free of violence and drugs. The shootings dramatized the volatile mix of children and guns and gave new urgency to a debate over school safety. A1.

Israel has offered the Palestinians an outline for self-rule in the West Bank and Gaza Strip that would give Palestinians control over many aspects of their daily lives, but would maintain Israel's control over security affairs and prevent the Palestinians from establishing any framework for an independent state. The Israelis presented their draft proposals on Monday to Palestinian negotiators at the Washington peace talks, and disclosed some of the contents today. The Palestinians presented their plan for self-rule during the previous round of talks last month.

HOLLYWOOD, Feb. 26 -- It seemed like business as usual today for Barry Diller. The 50-year-old chairman and chief executive of Fox Inc. spent the morning at his weekly staff meeting in his sleek, modern office and the afternoon with senior executives to discuss the Fox network's news programming. But like the Orson Welles character in "Citizen Kane," perhaps his favorite film, Mr. Diller has wrapped himself in mystery. He fielded phone calls from close friends but yielded scant information about his plans, avoided reporters and told associates and friends that as every hour passed he would diminish his control over the company's movie and television operations and finally step aside, at least for the moment, as one of the most powerful people in Hollywood.

In a move likely to raise hackles in Congress, a staff report by the Federal Communications Commission recommended that a single company be allowed to acquire as many radio stations in a city as it wanted until it had 25 percent of the audience. In a highly fragmented market like New York City, for example, a company could own four of the largest stations, or many more smaller stations, without exceeding the 25 percent limit.