May 7, 1992

Federal prosecutors in Manhattan yesterday accused Chinese officials of conspiring with two American companies to defraud the United States of more than $100,000 in duties on imported textiles and clothing. Prosecutors said the criminal indictment was the first to be brought in a broad, continuing investigation of efforts by importers to evade duties and bypass import quotas by shipping textiles made in China through other countries, like Pakistan. All told, such schemes may have involved $2 billion worth of goods last year, officials said.

Members of Congress told the Administration that proposed aid to Russia and other former Soviet republics was in jeopardy. Page A14.

The drive to spend a $200 million surplus from the Municipal Assistance Corporation on the public schools erupted into a major clash over spending priorities yesterday as the corporation's chairman warned the Dinkins administration that the city must earmark the money for school programs or risk losing it. The warning from Felix G. Rohatyn came five days after Gov. Mario M. Cuomo publicly endorsed the idea to give the money to the schools. The Mayor yesterday stood by his position that the surplus should be used to reduce the size of government through early retirement plans, raises and other incentives.

Marlene Dietrich, the magnetic movie star and singer who was an international symbol of glamour and sex for more than half a century, died yesterday at her home in Paris. She was 90 years old. In her films and record-breaking cabaret performances, Miss Dietrich artfully projected cool sophistication, self-mockery and infinite experience. Her sexuality was audacious, her wit was insolent and her manner was ageless. With a world-weary charm and a diaphanous gown showing off her celebrated legs, she was the quintessential cabaret entertainer of Weimar-era Germany.

Pressure to spend $200 million in Municipal Assistance Corporation money on New York City schools erupted into a major dispute over spending priorities. The corporation's chairman warned that the city must use the money for schools or risk losing it, while Mayor David N. Dinkins stuck to his contention that it should be used to trim the size of government through incentives like early retirement. Article, page B1.