January 3, 1997

FAA has failed to meet commitments to increase number of air traffic controllers in New York region, raising concerns among lawmakers and union officials who warn controllers are being overworked; increase in manpower from 303 positions to 314 was authorized almost two years ago, but number has actually declined, to 281 working controllers, because of problems finding workers qualified enough for busy center in Ronkonkoma, Long Island; 51 of these employees are trainees; shortage intensifies as FAA, under congressional order, authorizes 335 positions; center is so busy that it can take years longer than elsewhere to train newcomers completely; photo; union official Christopher S Boughn and John Walker of FAA comment (M)

New Jersey Citizen Action reports that State Atty Gen has taken 'crucial first step' toward requiring Blue Cross and Blue Shield of New Jersey to turn over millions of dollars to charitable trust before it merges with private insurance company based in Indianapolis (S) (New Jersey Daily Briefing)

Nearly 300 companies that improperly dumped hazardous waste at Superfund site in Camden County agree to pay $30 million to complete cleanup of landfill (S) (New Jersey Daily Briefing)

US mediator Dennis Ross fails again to conclude agreement on partial Israeli pullback in Hebron, as Palestinians dig in on demands for deadlines and guarantees of further withdrawals; map; Yasir Arafat's position may have hardened following incident in which Israeli soldier with history of mental problems opened fire in Hebron market; Israeli police detain second soldier, Yuval Jibli, for allegedly knowing about Noam Friedman's intention and failing to report it; 22-year-old Friedman, Orthodox Jew from West Bank settlement, is remanded for ten days; he tells court he regrets not killing any Arabs, objects to 'secular' court and female judge and says he acted to prevent 'surrender' of Hebron; major question is why he was drafted and given weapon, considering his mental history (M)

Newt Gingrich's re-election as House Speaker appears threatened, with 27 Republicans now saying they are unwilling to offer support because of ethics cloud; Gingrich and supporters scramble to rally rank-and-file and calm deserters by minimizing importance of ethics violations he has admitted; violations relate to use of tax-exempt funds for partisan purposes; photo; leadership suggests that ethics subcommittee will advise only reprimand, not censure; committee counsel James M Cole flatly denies that report (S)

Ameritech Corp becomes first Baby Bell to apply for permission to offer long-distance service within its own region; application sets off what could become epic political and regulatory battle; AT&T and MCI Communications contend that Ameritech has not yet opened its local monopoly to competition; Telecommunications Act of 1996 specifies that regional Bell companies can enter long distance only when they can show that their local markets are 'competitive'; Ameritech will become litmus test for other six Bell companies concerning where Federal Communications Commission will set bar for entry to long distance; FCC officials say privately that Ameritech may have jumped the gun in its application; FCC has 90 days to act on its request (M)

Summary of major news stories on inside pages

Some of nation's large retail chains report disappointing sales for end of 1996; CompUSA Inc says its sales for last three months of year rose 1.5 percent, far below analysts' predictions; J C Penney Co says December same-store sales rose 6.2 percent, but profit margins were weak; Dayton Hudson Corp reports 4.2 percent rise in same-store sales in December, but says full holiday season sales will be flat; analysts note that markdowns might have inflated sales at end of month, but they also cut profit margins for many retailers, and result may be poor earnings; graph (M)

Debate about nuclear power's future in United States heats up again, amid fears that nuclear power plants could become financial albatrosses when deregulation allows businesses and residential consumers choices about where they buy power; at issue: how will investors, taxpayers and consumers share in paying for $70 billion in debts piled up to build the plants and the billions more that will eventually be needed to retire them; most nuclear utilities want transition to free markets over 10 years, in which time they can recoup their investment in nuclear plants from rate payers; even those who switch to lower-cost competitors would be dunned with so-called exit fees or surcharges; consumer groups and some nonnuclear utilities are pushing for much quicker transition, saying that forcing consumers to continue paying for plants they are not using will give electricity users choices but no real savings; chart; diagram (L)

Clyde Haberman comments on added congestion in New York City's courts as result of Giuliani administration's crackdown on quality of life crimes (M)

Louis Colavecchio of North Providence, RI, is arrested in Atlantic City on charges of using counterfeit slot-machine tokens at Caesars Atlantic City Hotel Casino; is alleged to have used his tool-and-die shop to make counterfeit casino tokens (S) (New Jersey Daily Briefing)

New York City Board of Education is ordered to reduce crowding in 1,500 classrooms across city, in directives that could force schools system to hire more teachers, build more classrooms, bus students or cancel courses like calculus and art so teachers could be reassigned; rulings, in response to complaints filed by teachers' union in September, reflect school system's worst overcrowding in decades, with nearly 10% more students than schools can comfortably accommodate (M)