August 24, 1992

U.S. Carrier Poised Near Iraq An American carrier ended shore leave and set sail in the Persian Gulf, its planes ready to protect Shiites by enforcing a ban on flights over southern Iraq by Iraqi warplanes. Page A3. Optimism for Mideast Talks There is a feeling that local politics -- U.S., Israeli and Arab -- could produce real progress in the Middle East negotiations for the first time since they began in October. Page A3. Currency Pressures The United States appears willing to let the dollar fall further against the German mark. But Britain is expected to try to support the pound to avoid having to lift interest rates. Page D1. Newark Shooting Aftermath Two Newark officers who shot and killed two youths in a stolen car had been at a party, but were not drunk, the police director said. Page B1. Running Against Themselves In a year when incumbents are especially vulnerable, dozens of candidates from both parties are supporting term limits. Page A12.

Hillary Clinton, whose aggressive campaign style and dedication to children's causes seemed a political asset for Democrats at the beginning of the campaign season, now finds herself under full-scale attack as the Republicans try to turn her into a symbol of anti-family values. The overall strategy appears to be to paint Mrs. Clinton as a radical feminist, in contrast with her Republican counterparts: Barbara Bush, the quintessential grandmother, and Marilyn Quayle, who, like Mrs. Clinton, is a lawyer but has put aside her own career to support her husband's. And the focus of the attack is on two passages from Mrs. Clinton's legal writings, in law-review articles from the 1970's.

The Bush Administration has drafted a broad strategic plan that sets new priorities for the Government's vast biomedical research efforts, which until now have proceeded along largely disparate paths chosen by individual scientists and research institutions. The Government plan is intended to channel $9 billion in Federal money to areas Washington deems critical to the nation's health, while for the first time also trying to insure that American medical researchers proceed along lines that keep the United States economically competitive.

Markets President Bush appears to have written off the dollar for now. If it falls, even from the all-time low it reached on Friday against the German mark, so be it, as long as the swoon is slow and orderly. The decision does not mean that the Administration would tolerate a sudden, steep plunge. And it carries risks that could unnerve both the bond and stock markets. [ Page D1. ] The mark's strength is forcing Britain to confront its most painful lesson yet about the costs of economic integration with the Continent. And with the pound, like the dollar, plunging in value, London stands at the brink of being forced to prop up its currency. Any further drop could, in fact, force Prime Minister Major to raise interest rates at a time of recession. [ D1. ] The Economy Among many economists who shape the strategies of banks and investment houses, patience with the President ended with his speech last week. The very highlight of his plan -- offsetting cuts in taxes and spending -- was widely denounced in interviews as poison for an economy in a joyless, jobless recovery. [ D1. ]

Maybe George Bush is a Republican, maybe he did run his own business, and maybe he does want to treat Wall Street to a cut in the capital gains tax. But among many of the economists who shape the strategies of the nation's banks and investment houses, patience with the President ended with his speech last week. The very highlight of his plan -- offsetting cuts in taxes and spending -- was widely denounced as poison for an economy in a joyless, jobless recovery. "Almost every economist would agree that equal cuts in taxes and spending actually depress the economy," said Allen Sinai, chief economist of the Boston Company. "It is not a growth program."