May 12, 1994

The General Motors Corporation announced plans today to contribute $10 billion of stock and cash to finance the pensions of its retirees, in hopes of narrowing the nation's largest financing gap in a private pension fund. In one of many wrinkles, the complex deal, which was worked out with one Federal agency but still requires the approval of another, would allow G.M. to more easily sell all or part of Electronic Data Systems. For months, rumors have circulated on Wall Street that G.M. is seeking to unload E.D.S., the information technology subsidiary it acquired in 1984.

In a quiet laboratory at the American Museum of Natural History, Amy Davidson, peering through a microscope, carefully aims a thin carbide-steel needle at an 80-million-year-old skull the size of a walnut. She has spent nearly three weeks chipping and drilling at the rust-red sandstone that once encased the skull, which is from a rodentlike mammal known as a multituberculate. Now, with a deft hand, she uses the needle to quickly flick away a piece of rock that resembles a pepper flake. On the work tray in front of her is the barest sprinkling of rock dust from this and another skull, from a late Cretaceous Period turtle found in Bolivia -- a full morning's work.

President Mandela named both his estranged wife, Winnie Mandela, and his Zulu rival to the Cabinet, whose volatile mix will test his commitment to consensus. Page A8.

Crime Bill Under Attack On 2 Fronts by Senators Senator Bill Bradley said the Federal crime bill was a hodgepodge unlikely to stem violence, while the Senate opposed part of the House bill allowing death sentence challenges based on race data. Articles, page A22. Bratton Faults Training Two weeks after a man died in custody, New York's Police Commissioner said training for handling violent prisoners is inadequate. Page B1. Abortion Foe Finally Freed After spending 14 months in a New Jersey jail for refusing to identify herself, an anti-abortion protester was released. Page B7. It's Devils vs. Rangers The New Jersey Devils won their N.H.L. playoff series with the Boston Bruins, 4 games to 2, and will face the New York Rangers next. Page B15. Knicks Beat Bulls Again Led by Patrick Ewing and Anthony Mason, the Knicks defeated Chicago, 96-91, to take a lead of 2 games to 0 in their N.B.A. playoff series. Page B15.

International The German central bank lowered both its key interest rates by half a percentage point to the lowest levels in five years, suggesting that Germany was again joining the United States and its allies to stop the recent slide in the dollar. [ Page A1. ] Having smashed Japan's control of the computer memory-chip business, South Korea's electronics giants are poised to break Japan's near-monopoly on production of advanced flat-panel computer screens. [ D1. ] Free trade comes to Mexicans in passionate purple, nail-polish red and aquamarine -- funky-colored G.M. cars from Spain called Chevys that have entered the country since the North American Free Trade Agreement was approved. [ D1. ] Companies G.M. will contribute $10 billion of stock and cash to finance the pensions of its retirees, in hopes of narrowing the nation's largest deficit in a private pension fund. [ D1. ] A Macy's shareholder is seeking talks with management about a plan to get the retailer out of bankruptcy. [ D1. ] Allstate and Nationwide were accused of improperly denying homeowners insurance to minority groups. [ D4. ] Old airlines never die, or at least it seems that way since some old names may be flying once again. [ D4. ] Investors dumped shares of disk-drive makers amid fears that a summer slump in computer sales would lead to price wars. [ D4. ] Four American companies won stakes in a new mobile telephone venture in South Korea. [ D4. ] Meredith named a president and chief operating officer. [ D19. ] The Economy The cable television industry has declared war on telephone companies less than two months after most cable and telephone companies abandoned their mating frenzy. [ D1. ] California air-quality regulators will decide whether it is still a good idea to to require electric cars to be sold by 1998. [ D2. ] Domestic violence groups are pushing to end what they say is discrimination against victims by many insurance carriers. [ A23. ] It's a deal even a New Yorker could love: a hotel, show, fancy meal and a tour for $199.40 in a tourism promotion. [ B1. ] Markets The stock market declined in computer-driven trading, following a sharp rise in long-term interest rates. The Dow fell 27.37 points, to 3,629.04. [ D8. ] Bond yields surged and prices fell as the second leg of the Treasury's quarterly refunding drew less demand than expected and the auction of 10-year notes went poorly. [ D17. ] The dollar fell against most currencies after the Federal Reserve took no action to push up American interest rates. [ D15. ] Copper rose to a 15-month high as stockpiles declined. [ D15. ] Today's Columns Why has the bond market reacted so perversely to the Fed's pre-emptive strike against inflation if it is truly under control? At least one Nobel economist thinks that the market is behaving as if the inflation of 1979 is just around the corner. Peter Passell: Economic Scene. [ D2. ] Many owners of utility stocks should pay more attention to an industry trend of trimming dividends as a way to prepare for tougher competition. Market Place. [ D8. ] As the American Association of Advertising Agencies begins its annual meeting, signs of change include the meeting's somewhat remote venue. Advertising: Stuart Elliott. [ D19. ]