March 2, 1994

His disgust over the massacre of worshiping Palestinians by a Jewish settler in Hebron could not be plainer or more deeply felt. He has made outcasts of Israelis who would kill Arabs because they are Arabs, saying in the most graphic language that Judaism spits them out. And his Government has committed itself to arrest the most extreme settlers, take their guns away and keep them out of the occupied territories.

International President Clinton has decided to sign an executive order reinstating his broad legal authority to impose trade sanctions on Tokyo quickly, a move that the Japanese have warned would mark a big escalation in a brewing trade conflict. [ Page A1. ] den, Austria and Finland as members. [ A11. ] The Economy The economy surged at a 7.5 percent annual pace in the final quarter of 1993, the strongest performance in nearly 10 years. But economists stuck to the view that growth has already slowed. [ D1. ] The Senate narrowly rejected a constitutional amendment that would have required a balanced Federal budget. [ A1. ] Treasury Secretary Lloyd Bentsen proposed to pay for the consolidation of bank regulatory agencies by charging Federal examination fees to large state-chartered banks. [ D2. ] The New York Power Authority needs to improve its two nuclear plants or its chief will recommend shutting them. [ D5. ] Markets Stock and bond traders were shaken by new hints of inflationary pressure, inferred from a report of corporate purchasing managers. Stock prices fell, with the Dow Jones industrials losing 22.79 points. [ D6. ] Interest rates climbed to their highest level in almost a year. [ D14. ] The rise in rates pushed up the dollar. [ D16. ] Investors continue to rush into stock mutual funds, despite the recent sharp drop in stock prices. [ D17. ] The longest insider trading case from the 1980's ended as a former Merrill Lynch executive agreed to settle charges. [ D2. ] Crude oil prices rebounded after a two-day slide. [ D16. ] Companies Stanley R. Jaffe will lose his job as president of Paramount Communications when Viacom completes its acquisition of the company, Viacom executives said. [ D1. ] Broadcasters seem close to persuading Congress to allow them to use channels set aside for future high-definition television for money-making purposes like pay-per-view sports events. [ D1. ] Time Warner Cable cast new doubts on the quick arrival of commercial interactive television, saying it was delaying a 4,000-home field trial of its interactive television system. [ D1. ] State regulators are examining whether Prudential Securities brokers misled clients into joining a class action settlement. [ D2. ] Gitano filed for bankruptcy protection after agreeing to sell itself to Fruit of the Loom for $100 million. [ D4. ] Union Pacific agreed to buy the oil and gas subsidiary of Cyprus Amax Minerals for $819 million in cash. [ D4. ] American Telephone and Telegraph is threatening to change its name -- to just AT&T. [ D4. ] G.E. is teaming up with Motorola to produce a new generation of light bulbs that will use substantially less electricity. [ D4. ] The I.R.S. has chosen a Loral subsidiary to develop a scanning system for hundreds of millions of documents. [ D4. ] Business Technology Oil companies like Texaco face the challenge of convincing motorists that a new gasoline additive is worth the trouble of driving even a block out of the way to buy it. [ D5. ] Today's Columns Coca-Cola hopes to mimic the success of Snapple by entering the fast-growing market for noncarbonated "new age" beverages. Stuart Elliott: Advertising. [ D1. ] Some investors may be overly pessimistic about the outlook for ARCO. Market Place. [ D6. ]

Time Warner Cable cast new doubts yesterday on the quick arrival of commercial interactive television, with its promise of hundreds of channels of entertainment and home shopping. The company said it was delaying a 4,000-home field trial of its interactive television system in Orlando, Fla., until the fourth quarter. The trial was supposed to begin on April 1.

Stanley R. Jaffe, president of Paramount Communications Inc., will be out of a job when Viacom Inc. completes its acquisition of Paramount in the coming weeks, Viacom executives said today, confirming recent speculation of a shake-up at the Hollywood film studio. The Viacom executives, who spoke on condition of anonymity, said today that Martin S. Davis, Paramount's chairman, told Mr. Jaffe the bad news on Monday, after attending a meeting with Viacom executives in Vail, Colo., where it was decided that Mr. Jaffe would no longer have a role in the company.

Facing the twin perils of an underworld death threat and a 30-year prison sentence, Anthony Accetturo defected as the top Lucchese crime family leader in New Jersey to become a Government witness because, he says, the Mafia's current bosses have discarded the secret society's traditional principles. "The new generation that is running things threw all the old rules out the window," said Mr. Accetturo in an interview Monday in a northern New Jersey prison where he is being held in a witness protection wing. "The key word is greed. All they care about is money, not honor."