January 25, 1997

Dr Mary Ann Chiasson, Asst Health Comr in New York City, reports deaths from AIDS dropped sharply in NYC last year, declining 30%, for first time since AIDS epidemic was recognized in 1981; says that number of people who died from disease fell to 4,944 in 1996, from 7,046 in 1995, and the decline occurred in all ethnic groups and in both sexes; for unknown reasons drop was greater among men than women; Chiasson asserts that most likely explanations for decline are advances in therapy introduced in early 1990's and expanded access to medical care and services made possible by surge in government money in 1994 (M)

Clinton Administration officials say that Democratic National Committee organized coffee meeting at White House last May in which some of nation's most prominent bankers met to discuss banking regulations with Pres Clinton, a senior banking regulator, Treasury Secretary and top fund-raiser for Democratic Party; Hjalma Johnson, chmn and chief exec of East Coast Bank Corp of Dade City, Fla, recalls that meeting was 'open-forum discussion about banking issues, for the President and his senior staff to get a one-on-one feel of what do we see happening, what do we need in order to finance America's needs'; notes that Eugene A Ludwig, Comptroller of Currency, was one guest; bankers' coffee meeting is scantily described among hundreds of pages of documents released by White House about 103 coffees arranged over last two years by Democratic Party that were attended by Clinton and other top officials, along with lobbyists and fund-raisers, donors and Democratic supporters (M)

New Nuclear Deterrent France and Germany agreed to discuss adding a common nuclear dimension to Europe's military policy, and their leaders called their security interests ''inseparable.'' Page 3. Children Found Abandoned Ten children lived alone for weeks in an abandoned row house in Atlantic City, with no electricity, running water or blankets, and nothing to eat but canned vegetables. Page 25. A Young Winner in Australia Martina Hingis, the 16-year-old, became the youngest player to win a Grand Slam in 110 years when she defeated Mary Pierce, 6-4, 6-2, in the Australian Open final. Page 31.

Pres Clinton's 1998 budget will propose spending $43 million for program to detect outbreaks of food-borne illnesses before they become widespread and to improve food safety; plan, to be outlined in Clinton's radio address on Saturday, is Govt's first effort at early detection and prevention of kind of outbreaks that have been increasing in last several years; Administration officials say that last year alone, estimated 6.5 million to 33 million people became ill from food-borne diseases, and as many as 9,000 died (M)

Gov George E Pataki of New York and other Republican governors urge Congress to restore some of benefits taken away from legal immigrants under new welfare law, signed just six months ago by Pres Clinton; Republican governors' appeal is strongly endorsed by Democratic governors and by National Conference of State Legislatures; groundswell of concern virtually guarantees that Congress will reopen bitter debate on welfare legislation, although there is no assurance that any benefits will be restored; photo of Pataki (M)