January 23, 1993

If the most critical problem in providing national health care is getting control over rapidly rising costs, as President Clinton has often said, he may find some intriguing ideas in the German health care system, which offers coverage to all at a much lower price than Americans pay. Germany's much-admired system of health care, provided through nonprofit but private "sickness funds" that are legally mandatory for nearly 90 percent of the population, leaves patients with freedom to choose their own doctors and their own hospitals, and freedom from almost all medical bills.

While scores of homeless families spend night after night on chairs and tables in the offices of the city's welfare agency, hundreds of apartments that have been set aside as permanent housing for the homeless have been standing empty, often for months at a time. According to the city's Housing Authority, there are currently 401 available apartments scattered across the five boroughs. They are part of a city program that provides financial incentives to private landlords willing to offer apartments to the homeless.

President Clinton acknowledged today that he had made a mistake in rushing through Zoe Baird's selection as Attorney General. He conceded that he had not fully reviewed her hiring of illegal aliens, even though his aides informed him in general of the legal violation before he announced his choice. Responding to mounting public opposition to Ms. Baird and rapidly eroding support for her nomination in the Senate, Mr. Clinton early this morning withdrew her name from consideration for the highest Cabinet post he gave to a woman. Mr. Clinton immediately began to search for a new nominee. Aides said he would prefer another woman.

In an angry challenge to the Administration's promise to lift the ban on homosexuals in the armed forces, the Joint Chiefs of Staff are fighting to persuade President Clinton to reverse his campaign pledge, senior military officials said today. Defense Secretary Les Aspin's first meeting on Thursday with the Joint Chiefs was dominated by an emotional, two-hour discussion of their concerns that repealing the ban would wreck morale, undermine recruiting, force devoutly religious service members to resign and increase the risk of AIDS for heterosexual troops, senior officers said.

New Crisis at New York Post The New York Post said it would suspend publication as early as Monday unless its employees took a temporary 20 percent pay cut. Page 23. A Pickup in Home Building Home building expand 5.5 percent last month and posted the first yearly advance since 1986. Yet housing starts are still low. Page 37. Japan's Gains in Trade Japan's trade surplus with the United States rose 14 percent in 1992 and its global surplus hit a record. Page 37. Prospects for Bosnia Talks in Geneva will resume with some agreement but a cloudy chance for peace. News analysis, page 5.