March 31, 1997

2 Networking Companies Plan a $3.7 Billion Merger Continuing the wave of consolidation in the computer networking industry, Ascend Communications said that it had agreed to acquire Cascade Communications in a stock swap valued at about $3.7 billion.

Palestinian police maintain tight and sometimes rough grip on rioters at flashpoints across West Bank, preventing dangerous surge of violence many feared on Land Day, annual day of protest by Arabs; both Palestinians and Israelis continue tough talk; Arab officials meeting Cairo threaten to revive economic and political isolation of Israel; both sides seem eager to prevent any rise in level of violence that has flared at borders of Palestinian areas for 11 days; efforts of Palestinian forces seem to reflect recognition among Palestinian leaders that there are limits beyond which violence could spiral out of control; photo (M)

New Jersey Transit lowers fees at park-and-ride lot at Giants Stadium in East Rutherford to coincide with bus fares (New Jersey Daily Briefing) (S)

Drunken driver kills pedestrian and injures 2 others, Irvington (New Jersey Daily Briefing) (S)

Russell R. Kucinski is not a terrorist, he says. And the object on the front seat of his car made of modeling clay, watch parts, wires and paper towel tubes painted red was a sculpture for an art class at Rutgers University. But it looked enough like a bomb to the New Brunswick police to cause them to evacuate 30 residents in a three-block area for three hours on Saturday and charge Mr. Kucinski, 19, with ''creating a hazardous or physically dangerous condition.''

United Press International seeks to satisfy country's appetite for bite-sized bits of news by developing kind of niche journalism; hopes to sell fragments of news to customers ranging from service that puts headlines on pager screens to enterprise that wants to flash headlines in screaming lights installed in bars to religious broadcasters who have begun adding news broadcasts; Howard Dicus, UPI's general manager for news, says aim now is to provide public with information in any form they can use it; UPI's current owner is Middle East Broadcasting Center Ltd; photo; chart outlining company's financial travails (M)

House Speaker Newt Gingrich, at end of three-day trip to China, says he warned China's top leaders that US would intervene militarily if Taiwan were attacked; White House says Gingrich spoke for himself in conversations with Chinese leaders; says US policy is to meet its obligations under Taiwan Relations Act, including maintenance of adequate self-defense force for Taiwan; says it will maintain its one-China policy, fundamental bedrock of which is that both parties peacefully address Taiwan issue; photo (M)

Joycelyn Bennett is charged with murder after taking her 5-year-old son Daytwon to Union Hospital; boy was dead on arrival at hospital from weeks of starvation and abuse; New York City caseworkers say Daytwon and his five siblings had been in and out of foster care for years (M)

News analysis contends that while New York State is expected to start newxt fiscal year without new budget for 13th consecutive year and 19th in last 23 years, most lawmakers feel that voters prefer tardy package to a bad one (M)

Investors and others are examining mysteries surrounding Bre-X Minerals Ltd, small Canadian company that reported discovery of greatest gold strike in history, in jungles of Indonesia, only to have claims deflated, special report, Gold or Glitter?; mysteries have deepened following sudden death of Michjael T de Guzman, Filipino prospector and partner in venture, who plummeted from helicopter while en route to meeting with prospective partner to explain why new tests had shown hardly trace of 200 million ounces of gold he and Bre-X reportedly found in Busang area of Indonesia; even though Bre-X never made penny of profit from venture and financed operations solely from sale of stock, it attracted hordes of investors; company is currently struggling to retain credibility; its stock, which soared after disclosure of find, plummeted more than $3 billion on March 27, after drilling samples failed to show deposits; photos; map (L)

Crisis for Indian Coalition India's nine-month minority Government was on the verge of collapse after the Congress Party abruptly withdrew its support. Page A9. Charge Over Refugee Boat Albanian officials accused Italy of having caused the deaths of dozens of refugees after one of its navy vessels rammed their boat. Page A3.

Many analysts see new hurdles for stock market and possibility of significant downturn, with potential to end semingly miraculous bull run of 1990's; many expect what Wall Street calls a correction, when stocks fall 10 percent to 20 percent after big run-up; others say outlook for economy and stock market remains healthy and expect only minor, near-term setback; Dow Jones industrial average has gone six years without a 10 percent correction, longest such period in history; it is in midst of its biggest decline since last summer, down nearly 5 percent since March 11 (M)