June 30, 1993

Backing away from the military's desire to resume underground nuclear tests, President Clinton is preparing instead to declare that the United States will not be the first nation to resume testing of nuclear weapons, Administration officials said tonight. The decision would allow Mr. Clinton to avoid a confrontation with Democrats in Congress, whose permission to resume testing would be required.

For many Chinese investors, unused to the idea of risk, a $175 million financial scandal has been a horrifying reminder that stocks and bonds can be an easy way to lose money as well as to make it. A scandal involving "junk bonds" that promised to pay an eye-popping 24 percent interest -- twice the rate on Government bonds -- which were sold through dance hall girls, favorable newspaper articles and salesmen earning fat commissions, is reverberating throughout the Chinese political establishment. More than 100,000 investors, including some top Chinese political officials, are angry because they have been swindled and much of their investment may be lost. Street Demonstrations Last week, there were protests in the streets. And word is spreading that the jobs of some senior Government officials may be threatened.

Concluding that the Yankees might actually abandon their home in the Bronx and perhaps New York, Gov. Mario M. Cuomo has begun a major push to keep the team in the city and is looking especially at a 30-acre railyard on the western edge of midtown Manhattan as the possible site of a new stadium. The Governor's concern was underscored by the fact that he arranged a meeting for Friday with George M. Steinbrenner 3d, the team owner, to discuss possible construction of a new Yankee Stadium at the site.

Hoping to stave off a federally imposed system of ratings for violence on television, the nation's four broadcast networks have agreed to provide a warning to parents that would be put on the air just before shows laden with mayhem come on. The warning would also be made available to newspapers and magazines that publish television listings, allowing them to establish what would amount to a special coding for violent shows.

International More than 100,000 investors in China have been swindled in a scheme in which a small-time businessman raised $175 million by issuing bonds and then squandered the money on luxuries for himself. For some Chinese it has been the first experience in having stocks or bonds go down instead of up. [ Page A1. ] American pension funds find they have no clout in Japan. On annual-meeting day, a group of U.S. institutions voted against resolutions proposed by Japanese companies, but some of the companies denied that they had received any negative votes. [ D1. ]