August 7, 1997

Pres Clinton says Office of Management and Budget expects Federal deficit to fall to $37 billion in current fiscal year ending Sept 30, lowest level in 23 years, news conference; credits own economic policies; says bi-partisan balanced budget plan should lead to budget surplus of $20 billion in 2002; says he will use newly acquired line-item-veto power to strike out narrowly focused tax breaks and spending items from balanced-budget bills; urges Senate hearing on nomination of William F Weld as ambassador to Mexico; says he does not want debate over apology for slavery to dominate his race initiative; defends his continued fund-raising for Democrats; says he will back bill to overhaul campaign finance system and ban soft money; urges cooperation with Senate panel probing campaign finance abuses; seeks new authority to negotiate trade accords; urges Congressional support for changing Social Security and Medicare to prepare for retirement of baby-boom generation; graph; photo (M)

New York State Supreme Court Justice Albert Tomei rejects plea bargain in first death penalty case brought by New York City prosecutor since state reimposed capital punishment; says plea bargain provisions of state's death penalty law are unconstitutional because they penalize defendant who exercises right to jury trial and risks death sentence; defendant in Brooklyn case, Michael Shane Hale, had agreed to plead guilty to murder of Stefen Tanner and serve at least 50 years in prison; law, unlike that in most other states, bars death penalty if defendant pleads guilty to first-degree murder; Dist Atty Charles J Hynes appeals ruling (M)

Teamsters union president Ronald Carey, former United Parcel Service deliveryman, has been in many ways preparing for strike against UPS in his three decades as union leader; is using expertise and experience gleaned from battles against UPS in New York City in nationwide strike; he comments on his long concern about firm's growing use of part-time workers, phone interview; photo (M)

Microsoft to Join Apple In Surprise Partnership Apple Computer is teaming up with Microsoft in a stunning alliance that could alter the map of the computer industry and help insure the survival of Apple. Microsoft, whose operating system has long been the dominant alternative to Apple's Macintosh software, will invest $150 million in Apple, and the companies plan to cooperate on sales and technology issues. $(Page A1.$)

Federal Department of Housing and Urban Development, at request of Camden Mayor Milton Milan, plans to take control of city's problem-plagued housing authority for one year (New Jersey Daily Briefing) (S)