July 3, 1992

The nation's unemployment rate, the most politically sensitive economic indicator in an election year, rose sharply in June. Minutes after the report was released today, the Federal Reserve responded by cutting its key interest rate in an attempt to stimulate the sagging economy. The White House, counting on an economic pickup to buoy President Bush's re-election chances, had been putting intense pressure on the Fed to lower rates. Analysts said the unemployment statistics were so grim that the central bank had little choice but to act, despite its concerns that it would appear to be bowing to political considerations.

Few people outside New Hampshire had ever heard of David H. Souter when President Bush presented his first Supreme Court nominee to the country two years ago this month. Even fewer had any idea of where this state court judge without a track record on any major issue might fit on the ideologically polarized Court. It took a while, but by the time the Supreme Court term ended on Monday, the picture was clear. Justice Souter's home is at the center of the Court, a center that to a striking degree he is anchoring and helping to define.

President F. W. de Klerk, in a bid tonight to revive the collapsed negotiations on South Africa's transition from white rule, scaled back his Government's demand for an effective minority veto over the country's political future. In a letter to Nelson Mandela, president of the African National Congress, Mr. de Klerk said the Government would accept a new constitution ratified by 70 percent of a constituent assembly elected by South Africans of all races, dropping the demand for 75 percent approval that brought talks to an impasse in May.

A Bush Administration panel today recommended blocking the proposed sale of the LTV Corporation's missile division to a French military contractor. Industry officials said it was still possible that Thomson-CSF of France might work out a new deal by bringing in an American partner, but officials said that avenue was pitted with problems.

Gov. Mario M. Cuomo and legislative leaders reached agreement this morning on a bill that would force criminals who profit from books or films about their crimes to share the profits with their victims. The measure is intended to replace the celebrated "Son of Sam" law that was struck down by the United States Supreme Court last year. The accord was one of few to emerge from horse-trading in the round-the-clock drive to end the legislative session this morning. Many other bills were essentially being held hostage to one another, and officials were reluctant to declare final agreements on any measure until they had agreed on all.