March 12, 1997

Gov Pataki administration announces that tens of thousands of legal immigrants in New York State who faced loss of food stamps next month under new Federal welfare law will get reprieve of almost five months; state officials say they sought and have received waiver from Clinton Administration allowing local governments to continue benefits through August 22 (M)

Delaware judge rules that Brian C Peterson and Amy S Grossberg, teen-agers accused of killing their newborn son, are free to leave their parents' homes to do volunteer work (New Jersey Daily Briefing) (S)

King Hussein of Jordan writes Prime Min Benjamin Netanyahu personal and forceful letter contending that he cannot continue as Israel's partner and friend; Hussein accuses Netanyahu of decisions and actions that amount to 'deliberate humiliation' of Palestinians; says if Netanyahu proceeds with construction of Jewish settlement in East Jerusalem, it would amount to pushing Palestinians to 'inevitable violent resistance'; Netanyahu, in letter to Hussein, contends that he is reviving, not killing, peace efforts; photos (M)

Dow Industrials Up 5.77, As Broader Market Falls Stock prices closed mixed in volatile trading, buffeted by another selloff in technology stocks and rising bond yields. The Dow Jones industrial average edged up 5.77 points, to close at a record 7,085.16, but several broader market indexes lost ground. The Standard & Poor's 500 stock index fell 2.31 points, to 811.34, and the Nasdaq composite lost 5.96 points, to 1,316.76. $(Page D10.$) Treasury Bond Yields Rise Treasury securities prices fell, pushing the yield on the 30-year bond up to 6.85 percent, as investors continued to worry that forthcoming economic data might be strong enough to prompt the Fed to raise short-term rates. Concern was also raised by a cut by Fidelity's Magellan Fund in its bond position to eight-tenths of 1 percent. $(D20.$)

SUBWAY WORKFARE PLAN STALLS -- A plan to have welfare recipients clean the subway system has stalled because of opposition from the Giuliani administration. B3. HASIDIC DISPUTE SETTLED -- The Hasidic village of Kiryas Joel has settled its dispute with dissidents who said officials persecuted them. B6. STONE WASHED AND MORE -- A pair of blue jeans believed to be the oldest in existence is going back to Levi Strauss after a stop in SoHo. Metro Business, B5.