February 10, 1993

U.N. Chief Backs Bosnia Plan The United Nations Secretary General backed a peace proposal for Bosnia and Herzegovina, and differed with President Clinton. Page A7. Gay Russians and Fears After decades of persecution, homosexuals in Russia are emerging into the open, even though they say they continue to feel threatened. Page A3. On Patrol in Woodstock Why is a decorated big-city police officer now chief in a small town that chafes at authority? Page B1.

Swallowing $5.48 billion worth of restructuring charges, accounting changes and extraordinary insurance claims, Sears, Roebuck & Company yesterday reported a $1.8 billion loss for the fourth quarter and a $3.9 billion loss for the year. Sears had forewarned Wall Street that its 1992 financial statements would be awash in red ink, so few were surprised at the results. Sears stock fell only 12.5 cents a share on the New York Stock Exchange yesterday, closing at $49.375. Factors Cited in Losses Among the factors causing the losses was a $1.65 billion loss at the Allstate Insurance unit, which was battered by Hurricane Andrew and other natural disasters; a $1.72 billion charge against earnings at the the merchandising group, which announced plans last month to close its catalogue operations, shutter 113 stores and eliminate 50,000 jobs, and a $1.87 billion noncash charge to adopt new accounting methods for the cost of employee retirement and other benefits.

In the first transaction of its kind, a telephone company has acquired a cable television system, signaling the start of a race between the two industries to dominate the delivery of communication services of all kinds to the home. Both industries want to use their elaborate networks to provide movies on demand, hundreds of channels of television programming and on-line electronic libraries. And advances in technologies, blurring the distinctions between what the two industries can do, have set off a Darwinian contest.

President Clinton, saying he wanted a "leaner but more effective" White House, announced today that he was keeping a campaign promise to trim his staff by 25 percent. His cuts will save $10 million, a 5 percent reduction in White House costs, and fall most heavily on the staff's lowest paid employees, who do not hold political posts. The cut of 350 jobs allowed Mr. Clinton to achieve the 25 percent rate because he exempted hundreds of military communications personnel at to the White House, as well as the Trade Representative's Office and the Office of Management and Budget. Both offices are part of the executive office of the President.

With the fate of Schools Chancellor Joseph A. Fernandez hanging in the balance yesterday, his supporters and opponents waged a last-minute campaign through public demonstrations and private persuasion to influence votes on the New York City Board of Education. Mayor David N. Dinkins declared at a news conference at City Hall that Mr. Fernandez was one of the "best educators in the country" but then acknowledged that in the face of mounting opposition to the Chancellor, the administration was now asking only for a one-year extension of Mr. Fernandez's contract.