January 30, 1993

In what economists took as a clear sign of growing momentum in manufacturing, the Commerce Department reported today that new orders for durable goods jumped 9.1 percent in December, the biggest gain in 17 months. The surprisingly robust performance, which was broad-based, lifted orders for long-lasting goods to $134.5 billion, the highest level in four years.

Croatia Fights to Save Dam Officers worked feverishly in Croatia to prevent a blasted dam from crumbling and flooding villages. Page 4.

Mayor David N. Dinkins proposed a financial plan for New York City yesterday that relies on modest spending cuts, an unusual borrowing scheme and increased aid from the state and Federal governments that many fiscal experts consider doubtful. The proposals are the heart of his plan to close a $2.1 billion budget gap for the fiscal year beginning July 1. Over all, the Mayor proposed spending $31.9 billion, a 4.9 percent increase over spending in the current fiscal year.

Giving ground to his political opponents, President Clinton authorized the Pentagon today to continue its ban on homosexuals for six months with little practical change while the Defense Department drafts an executive order to lift the prohibition. After days of negotiation and rancor in the military and Congress, Mr. Clinton temporarily suspended the formal discharge of homosexuals from the military and announced that new recruits would no longer be asked if they are homosexuals. He ordered the Pentagon to produce an order for him to sign by July 15. Victory for Senator Nunn In the meantime, the military will continue discharge proceedings against avowed homosexuals or those it believes to be gay. While acknowledged homosexuals will not actually be ousted from the service, Mr. Clinton was forced to agree to a plan that will place them in the unpaid standby reserves -- in effect, putting their military careers in limbo -- and require that they petition for reinstatement if the ban is permanently lifted.

For a man whose military experience is limited to a year in the Coast Guard, Sam Nunn displays an uncanny knack for single-handedly surrounding the White Houses and taking its occupant political prisoner. When the victims were Ronald Reagan and George Bush, Mr. Nunn's fellow Democrats rallied round and cheered. This time, Democratic opinion is a bit more divided.