June 5, 1997

Hong Kong's business elite fears that United States may overreact to any modest political crackdown after colony reverts to Chinese rule in July, damaging already rocky US-China ties; is lobbying heavily in Washington against any US moves; all sides in political maneuvering leading up to turnover agree US is key to Hong Kong's future, both as huge investor and trading partner and as loudest international power calling for China to respect Hong Kong's autonomy; Clinton Administration, in own lobbying drive in Hong Kong, is warning that markets will ultimately punish China if it tramples civil liberties (L)

SHABAZZ HAS OPERATION -- Betty Shabazz went through the first of what could be an arduous chain of operations for her burns. B5. ASSAULT CHARGE FOR TEACHER -- A teacher dismissed after previous assault allegations was charged with punching two students. B3. RENT RULES PLAN -- Seeking a compromise, the State Senate majority leader unveiled his plan to phase out state rent regulations. B6. ADS IN YOUR POCKET -- Metrocards are getting advertisements. Metro Business, B9.

Funeral is held for Jonathan M Levin at Park Avenue Synagogue; weeping students from Taft High School attend funeral for popular teacher along with his father, Time Warner chmn Gerald M Levin, and his father's powerful friends; Levin was found shot to death in his Upper West Side apartment on June 2; photo (M)

Insurance company investigators say they have discovered nation's largest organized auto insurance fraud ring in northern New Jersey; say scheme involves hundreds of people and at least $75 million in bogus claims, and probably raised premiums for drivers across state; say Jose Alphonso Siri, native of Dominican Republic whose current whereabouts are unknown, is ringleader; Allstate and four other insurance companies have filed lawsuits over scheme (M)

Insurance company investigators in New Jersey said they had discovered the nation's largest organized auto insurance fraud ring. The scheme involved hundreds of people and at least $75 million in bogus claims, and probably raised premiums for drivers across the state, investigators said.