December 21, 1996

Heating oil prices are up 20 cents to 30 cents a gallon in Northeast from last year to highest level since 1990-91 Gulf War; are expected to rise further during winter; costs of alternative heating fuels are also up; graph; photo (M)

Diplomats and business executives held hostage by Peruvian guerrillas at Japanese Ambassador's residence, Lima, endure squalid conditions; released hostages read letter from 180 captives urging Government to restore water, power and cellular phone communication; International Committee of the Red Cross says hostages apparently have not been mistreated, but that extremely crowded conditions worsened when Government cut utility services; photos (M)

O J Simpson wins full custody of children, Sidney, 11, and Justin, 8, while defending wrongful death suit charging him with killing their mother, Nicole Brown Simpson; Judge Nancy Wieben Stock ends temporary guardianship of their maternal grandparents, Lou and Juditha Brown; finds Simpson is unlikely to abuse children (M)

Jury Rules Against ABC A Federal jury found the ABC television network committed fraud in its use of hidden cameras and undercover reporters for a report on a national supermarket chain. Page 8. Jets' Coach Steps Down Rich Kotite, who had a 4-27 record over two seasons, announced his departure two days before the season finale and said he would guide the team in the last game. Page 31. Apple's Co-Founder Returns Steven P. Jobs, who, starting from a garage, helped build Apple Computer into a personal computer giant, is returning to the company he left 11 years ago. Page 35. Computerizing a Landmark A company that develops arcades of interactive attractions and computer games is reported to be close to signing a lease on the old Liberty Theater on West 42d Street. Page 15.

Pres Clinton fills out Cabinet for second term, after last-minute scramble to add racial and ethnic 'diversity' ; calls in Federico Pena, outgoing Transportation Secretary, to head Energy Department, after Hispanic groups complain of lack of representation; Clinton appoints two blacks, Rodney E Slater to Transportation Department and Alexis M Herman to Labor Department; names Andrew Cuomo as HUD Secretary and nominates Aida Alvarez to Small business Administration; photos; Clinton also names Janet Yellen chairman of Council of Economic Advisers, former chief of staff Thomas F McClarty as special envoy to Latin America and aide Bruce Reed as chief domestic policy adviser (M)