January 28, 2000

Ruling on Cuban Boy Delayed A federal judge rejected the Clinton administration's latest effort to clear the way for the return of Elian Gonzalez to Cuba. PAGE A10 U.S. Gives Pakistan Warning The United States warned Pakistan that it risked sanctions because of its ties to a group blamed for the recent Indian Airlines hijacking. PAGE A8

Value of Europe's single currency, the euro, plunges 1.3 percent, to 98.86 cents, finishing for first time below psychologically important level of $1; since its debut, one year and 27 days ago, it has fallen 15.3 percent against dollar; decline is emotional blow to a currency that was expected to rally after its birth and even challenge supremacy of US dollar; foreign exchange analysts expect currency to fall further; graph; chart (M)

Pres Clinton, in his State of Union message, declares that state of union has never been better and proposes using some of nation's wealth to provide modest tax relief for lower- and middle-income Americans, particularly married ones; declares nation's economic revolution has been matched by 'revival of the American spirit'; cites declines in crime, teen births, welfare rolls; holds 'state of our union is the strongest it has ever been'; Clinton urges Federal legislation to require state licenses for all handgun purchases; Clinton's speech is so packed with proposals it goes on for 89 minutes, breaking record of marathon, 81-minute speech that Clinton gave in 1995; Clinton also receives more than 100 ovations, far more than he received in his other State of Union speeches; Republicans are taken aback by sheer number of initiatives; Texas Gov George W Bush calls it 'litany of spending'; other reaction noted; photos of Clinton, and of Hillary Rodham Clinton and Chelsea Clinton with Hank Aaron, former baseball great (L)

New York City Mayor Rudolph W Giuliani calls for an end to automatic pay raises for unionized city workers, from trash collectors to teachers, and proposes $2 billion in tax cuts over the next four years to residents and businesses as part of $36.8 billion budget he releases; spending plan for 2001 fiscal year is balanced in part by relying on an expected record surplus in current fiscal year by city's supercharged economy; Giuliani devotes large portion of his budget speech to city's public schools, insisting again that school system is out of control and its management bloated; Giuliani repeatedly praises his management of city while complaining about financial disasters he says were caused by his Democratic predecessors; announces his intention to ask State Legislature for authority to borrow billions of dollars more to build new schools, courthouses and even a West Side sports complex; proposes cut in city's income tax rate for all New Yorkers that would average 16 percent; highlights of Mayor's plan reviewed; photo; pie chart shows budget allocations (L)

New Jersey appellate court rules that a golfer can be held responsible for any injuries if others nearby do not get ample warning; in other words, even bellowing 'Fore!' after you hit what it known as a mulligan--an additional shot, usually from the tee, that magically leaves no trace on scorecard--would not automatically spare one from courts if ball goes amok; court rules that injured golfer, Jeffrey Schick, could go ahead with suit against John Ferolito, iced tea magnate whose errant shot in 1994 game hit Schick in face and broke his nose (M)