October 11, 1993

On Nov. 7, 1988, a cable stamped confidential landed on the desks of officials of the Iraqi Grain Board, one of the largest buyers of imported rice. It was from Peter Vegas, an executive of Comet Rice, a unit of the chronically unprofitable Erly Industries in Los Angeles. Although the grain board had requested bids, this was not a bid, but an audacious promise -- "We are offering to beat the lowest offer that you receive."

Rudolph W. Giuliani believes crime is as dire today in New York City as it was in 1989 when the crack epidemic was peaking. Mayor David N. Dinkins says the city is less on edge and the crime rate is down since he took office. In their conflicting views on that important question for voters -- is the city safer today than it was four years ago -- the two candidates for mayor lay the groundwork for their sharply different proposals for combatting crime.

This is turning into a nasty habit. For the second consecutive week the Jets went ahead by a large margin in the first half only to see it dry up and blow away. Last week they led the Eagles by 21-0 only to lose, 35-30. Today against the Raiders, the Jets (2-3) went ahead by 17-0 and then lost, 24-20, on a 1-yard touchdown run by Nick Bell with 4 seconds to play. But this was no ordinary comeback for the Raiders (3-2), who benefited from confusion over the timekeeping in the final seconds while trailing, 20-17.

Bowing to the pressure of a hostile but attractive takeover bid from QVC Network Inc., the board of Paramount Communications Inc. is expected to approve exploratory merger talks with QVC when it meets this morning, according to an executive close to the Paramount board. Separately, QVC is continuing talks on a cash infusion of as much as $1 billion from a group of investors said to include BellSouth and Cox Enterprises among others. Details of the deal were still being worked out last night, according to several executives close to QVC.

Companies In an examination of the cozy relationship between corporate agriculture and the Federal Government, the case of Erly Industries discloses how easily a politically connected agricultural company can reap rewards by exploiting loosely managed Federal programs. Dozens of interviews, court and corporate documents and hundreds of Federal documents obtained through the Freedom of Information Act provide details about how Erly used an obscure Government program to corner a valuable market. [ Page A1. ] The board of Paramount Communications is expected to approve merger talks with QVC when it meets this morning, an executive close to the board said. Also, QVC is soon expected to announce a cash infusion of up to $1 billion from a group of investors that is said to include BellSouth and Cox Enterprises. [ D1. ]

It was just moments before the Giants would take the field and blow out the Washington Redskins when Lawrence Taylor looked at Phil Simms and told him how bad he wanted this victory, that this might be the last time the two have a big game at Robert F. Kennedy Stadium. Simms looked at Taylor and sensed that when he said that, it was more than just L. T. wanting to win every game.

At high noon in a crook of the Bighorn Mountains, the sorrel danced nervously inside the corral, as a lanky cowboy moved in to start breaking the colt, a practice as old as the Old West. But this cowboy wore no spurs on his boots. He did not bark at the horse to show who was boss. He did not sneak around to throw a saddle on its back to climb aboard until it stopped bucking. Instead, he offered an outstretched hand, let the horse sniff it, and then gently stroked its neck and back.

For Brooklyn's Gowanus Canal, June 21, 1911, was a glorious day. A new system to flush out the putrid industrial canal was installed, as 350 dignitaries applauded from a barge and a young woman tossed red carnations on the still waters. The system, which involved a tunnel to bring clean water from New York Harbor to the head of the canal to get the stagnant waters moving, functioned for about half a century before breaking. Now, a mere 33 years later, the city is finally getting around to fixing it. Money has been appropriated, parts have been ordered, and bids have been invited.

While the Clinton Administration counts on low interest rates to revive the economy, the banking industry is coming to a different conclusion: The demand for loans to expand business activity is so weak that lowering the prime rate is not worth their while. "Simply stated, my customers don't borrow more because we lower rates; they borrow if they see an opportunity to use the borrowed money, and they don't see that opportunity," said Frank Lourenso, an executive vice president at Chemical Bank. His view was echoed in a half-dozen interviews with other bank executives and industry officials.

Cutting Hours to Save Jobs Union leaders and economists are seriously considering what once seemed a far-fetched remedy for disappearing high-paying jobs: a shorter workweek. Page A10. The Pop Star of Health Care The battle over health care legislation carries many trappings of the modern political campaign, with Hillary Rodham Clinton its popular, versatile star. Page A12. Marijuana, Not Chicken Soup A 79-year-old grandmother grew marijuana in her yard because she hoped it would help her ill son -- and she doesn't apologize for it. Page B1. Blue Jays and Phils Win Toronto beat Chicago, 5-3, to move within a victory of a pennant. Philadelphia won, 2-1, over Atlanta to even its series. SportsMonday, page C1. Title Talk for Giants? Phil Simms threw three touchdown passes as the Giants crushed the Redskins, 41-7, starting talk about a division title. SportsMonday, page C1.

In yet another marriage of drug- development and generic drug businesses, the Hoechst Celanese Corporation, the chemical and drug concern, said on Saturday that it had agreed to buy 51 percent of Copley Pharmaceutical Inc. for $546 million. If the deal goes through as planned, a newly formed Hoechst Celanese subsidiary, the HCCP Acquisition Corporation of Delaware, will buy 9.9 million Copley shares at $55 apiece. Copley, which will continue to trade as a publicly held company, closed on Friday at $49.75, down 25 cents. Hoechst Celanese of Somerville, N.J., is a unit of Hoechst A.G. of Frankfurt.

Before the shooting died down and the fires were extinguished, the questions were raging in Russia. One week ago, armed Communists and nationalists broke through police lines to the Parliament building, the fortress of legislators hostile to President Boris N. Yeltsin.