May 22, 1999

possible strike leaves t.w.a. at crossroads**Possible strike by International Association of Machinists and Aerospace Workers against Trans World Airlines after 'cooling off' period expires June 10 threatens airline's survival; both sides are concerned that even current strike threat could severely damage carrier, which continues to lose money in midst of industry boom; resume talks; union rejects airline's latest offer (M)

White House officials say Pres Clinton is waging pragmatic and moral style of warfare in Yugoslavia that pushes military action as far as it can go, in view of hard limits of American public opinion, Congressional dissent and discord within NATO alliance; officials say this approach gives United States more flexibility in defending American values than all-or-nothing precepts of retired Gen Colin L Powell, who said troops should not be committed without clear objectives and military means to achieve them; officials call Clinton's policy 'coercive diplomacy'; it is not intended to crush foreign enemy, but to achieve military and political goals overseas without losing votes at home; photo (M)

New York is likely vacation site this year for Pres Clinton and his wife, Hillary Rodham Clinton, as she weighs entering race for New York Senate; White House officials say Adirondacks and Shelter Island are under close study; Hamptons, where Clintons have stayed in past, suggest certain elitism that Hillary Clinton, if she runs, would probably want to avoid; wherever Clintons wind up, they are not likely to bump into Hillary Clinton's likely competitor in Senate race, Mayor Rudolph W Giuliani; he makes point of not taking vacations; photo (M)

Clinton Administration says United States will press its allies to move quickly to deploy peacekeeping force of 50,000 troops on borders of Kosovo; such a force would include 7,000 Americans; NATO is expected to take up issue in next week; troops are intended to help return Kosovar Albanian refugees and to police any agreement reached with Serbs; NATO and Pentagon leave open possibility that troops could enter Kosovo without permission of Pres Slobodan Milosevic; in that sense, Pentagon's announcement of support for such a force represents effort to put more pressure on Milosevic; US is said to be negotiating with Russia on concessions that would allow Milosevic to keep some forces in Kosovo; that would represent significant shift from key NATO condition for peace accord: that Milosevic agree to remove his soldiers and police forces from Kosovo; photo (M)

Olivetti SpA lures enough Telecom Italia shareholders with $65 billion takeover package of cash and securities to gain at least 51 percent of far larger rival in biggest hostile corporate takeover ever; victory wrecks Telecom's main anti-takeover strategy, proposed merger with Deutsche Telekom; Olivetti chief executive Roberto Colaninno comments; Telecom chief executive Franco Bernabe effectively concedes defeat; graph of Telecom share price during battle; photo (M)