August 31, 1996

Commission created by Gov George E Pataki issues report that contends casino gambling could generate as much as $2.6 billion in business for New York State annually and create 38,000 jobs; findings will probably be focus of debate early next year as State Legislature takes up measure to legalize casino gambling; Legislature already passed such a bill once, but second vote is required before measure can be put to voters in form of Constitutional amendment; legalized gambling would put Catskills and Niagara Falls region, where casinos would be permitted under amendment, in direct competition with Atlantic City and Indian casinos of Connecticut; map (M)

Chechnya Peace Seems Near Russia's national security adviser announced that he and Chechen negotiators had agreed to seek peace and put off a decision on the status of the rebel republic. Page 4. Palestinian Protest Fizzles A protest called by Yasir Arafat against Israeli policies drew fewer Palestinians than expected. Page 3. Custody Ruling Upheld A Florida Appeals court upheld a ruling that transferred custody of a child to her father, a convicted murderer, from her mother, a lesbian. The court said conduct, not sexual orientation, was the reason. Page 7.

Fort Lee, NJ, police force has been without permanent headquarters for 25 years, having outgrown its space in basement of Municipal Hall in 1973; Police Chief John Orso is moving for fourth time to temporary space, this time most of it in trailers in parking lot; Borough Council has given preliminary approval to $4.5 million station; photo (M)

Pres Clinton and Vice Pres Gore and their wives, in reprise of their 1992 campaign bus trips, storms up and down mid-Mississippi Valley, attacking Republican proposals; trip--trough swing states of Missouri, Illinois, Kentucy and Tennessee--will last two days; in New Mexico, Bob Dole also takes to road; photos (M)

Federal investigators announce that they discovered additional traces of explosive residue on pieces of wreckage from TWA Flight 800, but that new evidence is still not enough for them to conclude that plane was brought down by criminal act; investigators do not identify type of chemical that is found or pieces of wreckage where it was located; but senior investigators identify substance as RDX, a major ingredient of Semtex, plastic explosive developed in Czechoslovakia that has become a favorite of terrorist bombers (M)