August 17, 1998

Pres Clinton's senior advisers reportedly secure his agreement to acknowledge to Federal grand jury that he engaged in inappropriate physical relationship with former intern, Monica S Lewinsky, but he reportedly will deny that he counseled her or anyone else to lie about relationship; Clinton will reportedly say he did not commit perjury in earlier sworn deposition in Paula Corbin Jones sexual misconduct lawsuit, when he denied affair with Lewinsky; lawyers involved in case say prosecutors are seeking more than Presidential admission of extramarital activity, noting they have spent past seven months investigating whether he engaged in obstruction of justice, subornation of perjury or witness tampering; senior White House official says Clinton may deliver brief address to nation following grand jury appearance; David E Kendall, Clinton's private lawyer, scores 'groundless speculation' about President's testimony; says he will testify truthfully; White House official says Clinton is confident, is fully prepared and will tell truth; Sen Orrin Hatch, Senate Judiciary Committee chairman, says Clinton is likely to survive admission of sexual relationship with Lewinsky as long as he testifies truthfully, but that if he lies it would be grounds for impeachment; photos (M)

News analysis: strikes, or even threat of them, raise important questions about Bells' ability to compete in $200 billion telecommunications industry, business where they will try to move beyond conventional local service to offer long-distance and Internet services; few rivals in this future marketplace are unionized; according to Communications Workers of America, overall union representation at each of five Bells is said to average 60.7 percent of work force, meaning Bells carry significant labor legacy; question is whether Bells' need to negotiate new ways of operating with a big union hamper companies' ability to move nimbly in fast-changing environment (M)

New York City spends much of Aug 16 in state of near-political gridlock with at least six festivals drawing attention of state- and national-level candidates; some office-seekers dash from parades to street fairs, changing marshal sashes in car as they idle in mini-traffic jams caused by very events they are trying to get to; photos of City Council Speaker Peter F Vallone, Gov George E Pataki and Mayor Rudolph W Giuliani at several events (M)

Number of poor people enrolled in Medicaid in New York State has been declining for last three years in trend that has alarmed health care providers; analysts say that decline is in part side effect of overhaul of nation's welfare system in late 1996, legislation that was intended to move recipients into work force; say that when Congress drafted overhaul, it took pains to spell out that people no longer entitled to welfare, particularly children, would continue to be eligible for Medicaid; say people who have been removed from welfare or discouraged from applying have also been swept from Medicaid rolls; number of poor people enrolled in Medicaid in NYS declined 26 percent, to 1.28 million, between Jan 1995 and Jan 1998 (M)

The Clinton Administration is seriously studying its options for possible lawsuits against cigarette companies to recover money spent by the Federal Government in treating smokers under Medicare and other Federal health programs. Article, page A9.