July 2, 1993

Five years ago, the 270 graduates of Theodore Roosevelt High School packed the auditorium of Lehman College for commencement. Every other word sounded like "success" and "destiny" as cameras clicked and families grinned. It was so hot that day, June 24, 1988, that some of the girls wore bikinis under their flowing white robes, anticipating a later celebration on the beach. Among the graduates from this poor Bronx neighborhood where just finishing school was a big deal were 26 young people who received Regents diplomas, the school system's certificate of academic achievement. They included the valedictorian, Marcia Morgan, an aspiring physician whose family came from Jamaica, and Arnold Arias, a quiet Dominican who hung out with a group of guys who called themselves The Lost Boys.

President Clinton would find it "very difficult" to accept a proposal by the Joint Chiefs of Staff for a policy on gay men and lesbians in the armed forces that would label homosexuality as "incompatible with military service," a senior White House official said today. But Mr. Clinton is reserving judgment on any new policy until he can review specific details of a complete plan the Pentagon must submit to the White House by July 15, the official said. Meeting With Joint Chiefs The Joint Chiefs have urged Mr. Clinton to leave unchanged the language on incompatibility, which is the first sentence of the Pentagon's current regulation banning homosexuals in the armed services. But the White House official said Mr. Clinton was reluctant to accept that sort of language, which would stop well short of his pledge to permit gay men and lesbians to serve in uniform without discrimination or fear of punishment.

On Fridays, television and radio news, listings and advertising now appear at the end of section D, with Home Video. Today, pages D26-27.

As New York State closes underused psychiatric hospitals to cut costs, a major political struggle has developed in the Legislature to force Gov. Mario M. Cuomo to use much of the savings for community care for the mentally ill. The fight goes to the heart of a dispute that began in the 1950's, when the advent of mood-leveling drugs allowed the state to begin emptying its massive psychiatric hospitals. The state saved millions by reducing hospital beds for the mentally ill and has made significant increases in financing community care. But mental health advocates charge that it has not redistributed a corresponding amount to community programs for those who were released from institutions.

International The German central bank lowered two key interest rates: the discount rate and the Lombard rate. It was the fifth in a series of reductions that began in September. [ Page D1. ] Peter Sutherland became director general of GATT and said the core of a long-delayed world trade agreement must be hammered out at the summit meeting in Tokyo next week. [ D1. ]

A decade ago, Scott French bet a few Silicon Valley friends that a computer could write a novel. Not Tolstoy or Faulkner maybe. But a computer, Mr. French told his friends, could probably be programmed to turn out a trashy page-turner -- the sort of steamy fiction that Jacqueline Susann, author of "Valley of the Dolls," used to crank out. A rough draft within a year, he wagered. Twelve months later, Mr. French was wiser and $300 poorer. But that lost bet fueled an eight-year obsession that resulted in the publication this week of "Just This Once," which carries this explanatory subtitle: "A novel written by a computer programmed to think like the world's best-selling author" -- Ms. Susann -- "as told to Scott French."

he plan that President Clinton announced today to bring peace, jobs and a degree of protection to the ancient forests of the Pacific Northwest will not end the decade-long civil war in the woods here. But the plan does signal a historic shift in the way the Federal Government will manage more than 23 million acres of public forests in America's timber basket. Logging will no longer dominate decisions, with the number of trees cut reduced by more than two-thirds from its highest levels. At the same time, there also will not be any large formal wilderness areas, which would be off-limits to anything but light-footed visits by man.

Question: When is a $6 million Miami condominium a bargain-basement steal? Answer: When you're a foreigner looking for that second home hideaway. At the exclusive and pricey Fisher Island, a picture-book luxury community on Biscayne Bay that is accessible only by air or water from mainland Miami, sales of condominiums to foreign buyers have skyrocketed. About half the sales now are to foreigners, said John E. Riordan, the president of the island sales operation.

ON a recent episode of "The Simpsons," that lovable, snide cartoon family visited a water park. Hundreds of revelers in bathing suits were waiting in line for the best ride, called H2 WHOA!, a long, blue plastic pipe with water rushing through it. Bart and Lisa cut to the front of the line; then Homer barreled up to the entrance and jumped in. The only problem was that Homer, whale that he is, got stuck in the pipe. The security officer assumed that whatever was causing the blockage was too big to be human. Eventually a crane had to remove the section of tubing with Homer in it. That probably wouldn't happen in the real world, but water parks do offer a bizarre peek into American recreational culture. To be frank, they're a little silly. Why not go to the ocean, where you have access to a natural resource? Why not go to an amusement park, where at least you can keep your clothes on? To the uninitiated, the water-park experience can seem rather traumatic. You strip to your bathing suit, splash around in front of strangers and jump into a giant serpentine slide like a melted bobsled run that flings you around, then dumps you unceremoniously into a swimming pool. Whose idea of fun is this?

San Francisco Gunman Kills 8 A gunman who terrorized a high-rise building also wounded at least five others in a hail of bullets before he himself was killed. Page A8. 4 Killed in Israeli Bus Attack Two Palestinian gunmen opened fire aboard a bus in Jerusalem, and then hijacked a car. Four people, including the hijackers, were killed. Page A6. I.N.S. Plans to Detain Sheik Sheik Omar Abdel Rahman, whose followers have been charged in two bombing conspiracies, is to be taken into custody, officials said. Page B1.

The Justice Department decided yesterday to detain the Islamic fundamentalist preacher whose followers are suspects in two bombing conspiracies, law enforcement officials said. The authorities said Sheik Omar Abdel Rahman, a 55-year-old self-exiled Egyptian, would be detained on immigration charges, but they would not say when or where.

NEW POLICY ON ABUSE BY PRIESTS Responding to a growing number of sexual-abuse allegations nationwide against parish priests, the Roman Catholic Archdiocese of New York has spelled out new procedures for investigating such cases and disciplining offenders. A1. FIGHT OVER MENTAL HEALTH FINANCING A major political struggle has developed in Albany to force Gov. Cuomo to spend money the state is saving by closing psychiatric hospitals on community care for the mentally ill. A1. NEW YORK CITY