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. ]