July 18, 1992

The Dinkins administration has agreed to broad changes in its relationship with New York City's huge and overburdened public hospital system, giving the system far more control over its finances. Administration officials said that the change had been prompted by years of bureaucratic squabbling between the Health and Hospitals Corporation and City Hall over how to manage the system, which has been widely criticized for the quality of its care. Officials said that the changes should make hospital managers more accountable, provide them with incentives to cut waste and improve efficiency and allow them to shift resources to provide better care to poor people.

In the broadening aftermath of a sexual harassment scandal, the Navy is canceling the promotions of two of the service's most senior admirals who were involved in two other sexual harassment incidents. One officer is Vice Adm. Jerry O. Tuttle, a three-star admiral whomPresident Bush had nominated to become the chief of naval aviation, one of the top dozen posts in the Navy. The other is Rear Adm. Joseph W. Prueher. Mr. Bush had chosen him to be promoted two grades, from one star to three, and to assume command of the Third Fleet, based in San Diego.

Officials of what was the Ross Perot campaign painted a picture of the Texas billionaire today as a candidate so disdainful of traditional politics that he resisted spending money on polls or campaign commercials, even as he spent lavishly to finance grass-roots volunteer groups. "It wasn't that he was unwilling to spend money," said one campaign insider. "He didn't want to spend money on things that mattered."

U.N. Official to Warn Iraq To Comply or Risk an Attack A senior United Nations flew to Baghdad to warn Iraq that it risks being attacked unless it cooperates with arms inspections under the terms of the gulf war cease-fire. Page 3. Havel to Resign as President Vaclav Havel said he would step down rather than preside over Czechoslovakia's breakup. Page 3. Catholics on Homosexuality The Vatican urged Roman Catholic bishops in the United States to oppose laws that promote public acceptance of homosexual conduct. Page 7. Trade Gap Widened in May Exports fell for the third straight month, as the nation's trade deficit widened to $7.38 billion. Page 35. Another Sore Spot for Mets Dwight Gooden, the Mets' onetime ace, will go on the disabled list with an inflamed right shoulder. Page 31.

The Supreme Court today refused to order the Federal Government to return the French abortion pills it had seized from a pregnant woman two weeks ago. In a 7-to-2 vote, the Court decided the case on an emergency basis. The woman, Leona Benton, is eight weeks pregnant, and Saturday is the last day she could take the drug to end her pregnancy under the guidelines of the manufacturer, the French company Roussel Uclaf.