July 20, 1993

Companies General Motors will give $1,000 rebates on new pickup trucks to millions of current owners of the 1973-to-1987 models with side-mounted fuel tanks, to settle 36 class-action lawsuits. The settlement does not resolve a dispute with Federal regulators who want the trucks recalled for what they say is a safety defect. [ Page D1. ] Empire Blue Cross and Blue Shield plans to limit the choice of doctors and hospitals for the oldest and sickest policyholders, trying, the health insurer said, to hold down costs. [ A1. ]

Bowing to diplomatic and military pressure, President Saddam Hussein has agreed to let the United Nations monitor Iraq's military industries to insure that Iraq does not build more weapons of mass destruction, a senior United Nations official said today. After five days of talks with the Iraqi leadership, Rolf Ekeus, the head of the special commission that the United Nations Security Council formed to disarm Iraq, declared that "we have broken out of the vicious circle" of threats and counter-threats that had raised the prospect of another armed confrontation with Iraq.

A Government commission charged with reviving the airline business said today that it would recommend tax cuts and regulatory relief to help reverse what it called the industry's "abysmal financial condition." In preliminary findings that were cheered by the industry, the panel called for exempting airlines from any new tax on transportation fuels, rolling back taxes on passenger tickets and revising the Federal income tax code so that money-losing airlines would not be subject to the alternative minimum tax.

The General Motors Corporation said yesterday that it would give a $1,000 rebate for the purchase of a new truck to each of the millions of current owners of 1973 to 1987 G.M. pickups with side-mounted fuel tanks, thus settling 36 class-action lawsuits. The value of the rebates could conceivably exceed $5 billion, although G.M. said the settlement would not be a financial drain on the company.

The former postmaster of the House of Representatives has told prosecutors that he helped Representative Dan Rostenkowski, the powerful Illinois Democrat, embezzle $21,300, according to prosecutors, defense lawyers and public records that describe some of the transactions. The former postmaster, Robert V. Rota, pleaded guilty in Federal District Court in Washington today to one count of conspiracy and two counts of embezzlement and said he had helped an undisclosed number of lawmakers embezzle tens of thousands of dollars since his appointment in 1972 until 1992, when he resigned. Important on Big Issues Government and defense lawyers said the guilty plea was a significant step toward indicting Mr. Rostenkowski, but it could be weeks before the Government moves against the Chicago Democrat. Still, the plea today by Mr. Rota, who has agreed to testify against Mr. Rostenkowski, came at a delicate moment, when the House and Senate have just begun negotiations on Mr. Clinton's economic program.