July 19, 1997

News analysis; two weeks of Senate hearings into Democratic campaign-finance practices have thus far failed to prove most important important Republican suspicions that deputy assistant Commerce Sec John Huang may have been conduit for Chinese Government in pouring money into Pres Clinton's 1996 re-election campaign, and may also played similar role for Indonesia's powerful Lippo Group, for which he may also have been industrial spy (M)

Federal appeals court strikes down key elements of Federal Communications Commission's guidelines for opening local telephone markets to competition, ruling that Commission overstepped bounds of Telecommunications Act of 1996; decision by Judge David R Hansen says law plainly grants state commmissions, not FCC, authority to determine rates involved in implementing local competition provisions of act; is likely to further slow introduction of unbridled competition in nation's telecommunications business, since it would allow states to develop different mechanisms for bringing new companies into market, rather than following uniform FCC guidelines; FCC says it will appeal decision to Supreme Court (M)

Law enforcement officials seek clues as to what may have triggered killing spree, in which Andrew P Cunanan is suspected of murdering five men in three states, including Italian fashion designer Gianni Versace in Miami Beach; say most tantalizing clue may rest with first murder in Minneapolis in April of Jeffrey Trail, with whom Cunanan was believed romantically linked; he reportedly told friends when leaving San Diego that he was going to Minneapolis to 'settle some business' with Trail; he continues to elude authorities in Miami area; photos (M)

Gerry Adams, president of Sinn Fein, political arm of Irish Republican Army, urges organization to resume cease-fire it abandoned in 1996; cessation of hostilities is condition set by British and Irish Governments for establishing talks involving all major parties to end sectarian conflict that has claimed 3,200 lives since 1969; photo (M)

Rwandans Held in Massacre Acting for a war-crimes tribunal, the Kenyan police arrested seven high-ranking officials in the former Rwandan Government on charges of killing Tutsi in 1994. Page 4. Business in New Welfare Era Merchants in a Brooklyn neighborhood where as much as 80 percent of a store's business can be conducted with food stamps are concerned about welfare cuts. Page 21. Stanley to Cut 4,700 Jobs Stanley Works, the tool maker, plans to cut 24 percent of its work force, about 4,700 jobs. But only a few employees in its home state of Connecticut will be affected. Page 33. Stocks Plunge Below 8,000 Just two days after the Dow Jones industrial average breached 8,000 points, stock prices plunged in a broad selloff. The Dow fell 130.31 points, or 1.62 percent. Page 31.