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1 58 PAGES ST. PETERSBURG. FLORIDA, SATURDAY, JULY 25, 1981 20 CENTS A COPY DsirffloL Lfc8)n)in) si -m to mid By WILLIAM CLAIBORNE WMhlngton Pom Haig says shipment of F-1 6s hinges on truce By OSWALD JOHNSTON lot Angli Tlm enclave in southern Lebanon at about 7 p.m. 1 p.m. EDT and that three residents of the Lebanese village of Klea were wounded.

Israeli forces did not return fire, a spokesman said. The Palestinians did not immediately comment on the Israeli accusation. A command statement issued later in the evening said that at 11:30 p.m., "PLO terrorists" committed a second violation by firing several dozen Katyusha rockets toward Metulla and Lebanese Christian villages. The Soviet-made Katyushas are one of the main weapons of the Palestine Liberation Organization (PLO). BEGIN SAID the Israeli Cabinet, which discussed Habib's proposal for a cessation of hostilities for two hours, endorsed the statement.

Sea MIDEAST, 4-A JERUSALEM Israel agreed Friday to a cease-fire in its two-week war of attrition with Palestinian guerrilla forces in Lebanon, halting at least temporarily the cross-border violence. It was the first time in Israel's 33-year history that an Israeli government agreed not to conduct military operations against Palestinian forces. U.S. special envoy Philip C. Habib made the surprise announcement in a terse cease-fire statement he read after meeting with Israeli Prime Minister Mena-chem Begin.

Five hours after the truce began, the Israeli military command claimed the Palestinians broke the cease-fire. The Israelis said the Palestinians fired Katyusha rockets at the Israeli border town of Metulla and at villages of the Christian-controlled spokesman Dean Fischer conceded Friday that the "cessation of hostilities" involved two parties, and that those parties are krael and the PLO. ADMITTING THAT, Fischer said, does not constitute a change in the fixed American policy of refusing to grant official recognition to or negotiate with the PLO until that organization recognizes Israel's right to exist. But, he said, recognizing the PLO as a party to Friday's cease-fire is simply "accepting the reality" of the situation. Haig said he wanted to return the focus of U.S.

diplomacy to special envoy Philip C. Habib's mission, which started in early May. That mission is to negotiate stability among the warring factions in Lebanon and to See F-16. 4-A WASHINGTON The Reagan administration plans to test the cease-fire between Israel and Palestinian guerrillas in Lebanon before deciding whether to deliver 10 F-16 fighter-bombers that were held up at the height of the fighting, Secretary of State Alexander M. Haig Jr.

said Friday. "We're going to be watching the situation very carefully in the hours, days and perhaps weeks ahead," Haig said, even while welcoming the cease-fire and commending both Israel and the Palestinians for a "degree of moderation." While deferring to Israel's refusal to accept a formal cease-fire with the Palestine Liberation Organization (PLO), which it does not recognize, State Department The phrasing of U.Si envoy Philip Habib's statement omitted any mention of the parties to the truce. Casey didn't reveal stock holding, gift to Senate panel, associate says Genetic engineering New York Timet Potatoes and tomatoes on same vine? VM Casey V. eV tm. issued a t.

rorceiui statement 43 mm'-! nonvinn allegations against him. Casey's various accounts of his involvement in a New Orleans agribusiness concern, Multiponics Inc. At the White House, President Reagan issued a terse statement expressing support for his former campaign chairman but noting that his staff was following closely developments in the situation. Although Reagan was publicly supporting Casey, his top aides were investigating the CIA director's past for other potentially damaging disclosures. White House sources confirmed that both Chief of Staff James A.

Baker III, and White House counsel Fred Fielding talked with Casey by telephone Friday, seeking reassurance from the CIA director that there are no skeletons in his closet. On Capitol Hill, Casey issued a strong statement denying allegations against him and met with Intelligence Committee members and Senate Majority Leader Howard H. Baker Jr. of Tennessee. ASSISTANT SENATE Majority Leader Ted Stevens of Alaska said that he had talked with members of both the House and Senate intelligence panels and that based on his conversations, he said, "It is my judgment that Mr.

Casey would be wise to accept Mr. Go-ldwater's advice" to resign. Stevens said that "additional matters," which he would not discuss, WASHINGTON In Senate confirmation proceedings this year, CIA Director William J. Casey failed to disclose stock holdings in one corporation and the receipt as a gift of a $10,000 interest in another business venture, according to a review of public records and information provided by a close business associate. In a personal financial disclosure statement presented to the Senate Intelligence Committee last January, Casey said that he had not received any gifts worth more than $500 in the last five years.

On Capitol Hill Friday, support for Casey was crumbling. Republicans and Democrats on the Senate Select Committee on Intelligence joined Chairman Barry Goldwater in urging that Casey resign. GOLDWATER, who had called for Casey's resignation Thursday night, assembled reporters Friday to deny a report that he had privately urged Casey to step down. But he proceeded to tell them that Casey should quit his post because Max C. Hugel, his former clandestine service chief, had been unqualified for the job.

Hugel was forced to resign because of a financial scandal. Goldwater also said that the committee was investigating "inconsistencies" and discrepancies in had raised questions about "matters of judgment." Sen. William V. Roth R-Del, a committee member, also issued a statement urging Casey to resign "for the good of the nation." While the intelligence committee was continuing its investigation of Casey's financial transactions, he said, "these charges have so damaged Casey's credibility with the Intelligence Committee that I believe it is impossible for Casey to effectively discharge his duties. He should go now." In extensive interviews with Carl G.

Paffendorf, a longtime business associate of Casey's, Paffendorf said that in November or December 1976 he gave Casey a $10,000 interest in See CASEY. 4-A WO New York Tim art Color by St. Petersburg Timet SCOTT WEST AND Reagan sweetens his tax package Some big firms banking on a new direction in agriculture Other congressional action, 3-A. By WILLIAM J. EATON Lot Angeles Timet Reagan to address nation on taxes, Social Security By ANN CRITTENDEN New York Times Associated Press ment of Agriculture's competitive grants program, established in 1977 specifically to finance basic research in agriculture.

As the enthusiasts tell it, however, there will one day be perennial corn; crops that can fix their own nitrogen, thereby dispensing with expensive artificial fertilizer; potatoes and tomatoes on the same vine, and plants that tolerate the high levels of salt in heavily irrigated soil. And behind each vision, lurks a multibillion-'dollar market, waiting for the science. "We think food will be in the 1990s what energy has been the the 1970s and 1980s," said A. Robert Abboud, Occidental's president, pointing out that the company's studies indicate a significant food shortage in the 1990s. (Occidental, in addition to purchasing Iowa Beef Processors earlier this month, has bought Zoecon, a research group working on biological pest controls See GENETIC.

8-A WASHINGTON In an eleventh-hour bid for Democratic votes for his tax program, President Reagan Friday endorsed an additional $65-billion worth of tax cuts over the next five years, including automatic reductions in tax rates to offset inflation starting in 1985. The President added several sweeteners, such as an extra $13-billion worth of tax breaks for owners of oil-producing lands and oil producers, as he matched or surpassed many provisions of the tax bill approved by the Democratic-controlled House Ways and Means Committee. IN AN APPEAL to House Republicans Friday to support the latest version of the administration-backed bill, the President told them: "We can change the course of history, reverse the decline of America's economic strength and start her on the road to recovery again." But Rep. Dan Rostenkowski, D-I1L, chairman of the tax-writing Ways and Means Committee, contended that the new Reagan plan would cost up to more than the Democratic alternative between now and 1986. "He (Reagan) has won the game of one-upsmanship," See TAXES.

4-A spectrum a swarm of brand new companies have spawned, with exotic names like Calgene and Plant Genetics. The big three among these pioneers are Advanced Genetics Science of Bermuda and Greenwich, partly owned by Rohm Haas; the Agrigenetics which is building a new laboratory for basic plant research in Madison, and the International Plant Research Institute in San Carlos, which with the help of funds from Atlantic Richfield is exploring everything from plants that can grow in salt water to putting animal genes into plants in order to produce meat-like proteins. "IT ALL REMINDS me of the excitement over Laetrile everyone wants to believe in it," said one skeptic, Holly Shauer, head of the Depart WASHINGTON President Reagan will make a nationally broadcast television address Monday night to promote his tax program and talk about the integrity of the Social Security system. The President also will delay by one day, to Thursday, a speech-making trip to Atlanta so he can be in Washington to bird-dog the voting in both the House and the Senate on the tax bills, aides said. The votes are expected Wednesday.

Two networks, CBS and NBC, will carry Monday's speech, at 8 p.m. EDT, from the White House, presidential spokesman David Gergen said. "We do not know what ABC or others will do," he said. The speech, expected to last less than 30 minutes, "will deal with the need to stimulate the economy by lowering the burden of taxation," Gergen said, and "the need to preserve the integrity of the Social Security system." You don't have to lick your fingers to tell which way the wind is blowing. Like a spring tornado, this season's enthusiasm over genetic engineering is sweeping over agriculture, one of America's biggest businesses and the nation's chief exporter.

The signs of a new industry in the making are everywhere. The names are sometimes established and the numbers huge Du Pont, Monsanto, Pfizer, Atlantic Richfield, Stauffer Chemical, Upjohn, Occidental Petroleum, and Ciba-Geigy, among others, are spending tens of milions of dollars to explore the agri-cultural applications of bio-engineering. At the end of the corporate Times DIGEST 7 Judge: Abscam agents did not entrap targets Tampa cop slain in undercover drug buy, 1-B By RICHARD T. PIENCIAK Associated Preu Star owners discuss sale, but receive no hard offers Time, Inc. said Friday it has been in touch with 1 0 potential buyers for the Washington Star since announcing that it will close the 1 28-year-old newspaper as a hopeless money-losing proposition.

Some of the contacts were initiated by Time and some by potential investors but none was "substantive," said Louis Slovinsky, director of public affairs for the publishing empire. Spokesmen for the Newspaper Guild and the International Typographical Union representing most of the 1 ,427 workers who will be left jobless when the newspaper closes Aug. 7 said they were exploring the possibility of aiding the purchase of the Star by its employees. 'Atlantic' to print LBJ biography In what its editor calls "a commitment without precedent in our 1 24-year history," the Atlantic Monthly will run five installments including two cover stories of a biography of Lyndon B. Johnson.

The book is The Years of Lyndon Johnson, the first of a projected three volumes by Robert A. Caro, who won the 1975 Pulitzer Prize for his biography of Robert Moses. The first installment of the Johnson biography is scheduled for the Atlantic's October Norway complicates Conoco fight The multi-billion dollar takeover battle for Conoco Inc. moved to the international front Friday when Norway warned it would reconsider Conoco' North Sea drilling rights if Seagram Ltd. of Canada succeeds in acquiring a controlling interest in Conoco.

In Oslo, Oil and Energy Minister Arvid Johanson told the Aftonposten newspaper that the government was skeptical about Seagram because "the whiskey company has no experience with oil production and any related activity." Seagram charged Conoco officials with using "desperation tactics" by soliciting Norway's support in its fight to block the Seagram bid. Cranston demands Watt's ouster The Senate's No. 2 Democrat, California's Alan Cranston, joined environmental groups Friday in calling for the ouster of Interior Secretary James G. Watt on grounds he is "a puppet of the exploiters and destroyers." In a speech on the Senate floor, Cranston said, "I want Mr. Watt stopped.

Now." He charged that during six months in office. Watt "has exceeded even the worst-case estimate of his harshest critics." Simultaneously, the Wilderness Society published a four-pound reference manual documenting what it called "Watt's Wrongs" and again demanded the secretary's ouster. charged that they had been entrapped by the authorities. Specifically, they said undercover FBI agents overreached their bounds by inventing a crime opportunity, committing perjury and obstruction of justice, prosecuting selectively, doctoring tapes, "coaching' targets for secretly videotaped meetings and keeping sloppy paperwork or none at alL Sentencing and appeals had been held up pending outcome of the arguments on the entrapment issue. Murphy faces a 5-year prison term for a conspiracy conviction, the others face 15-year terms for bribery.

The judge ordered the seven to appear Aug. 13 for sentencing. The next level of appeal would be to the 2nd U.S. Circuit Court of Appeals. At least three of the defendants said they would pursue higher court action.

Pratt's ruling was based on more than 4,000 pages of testimony from 24 witnesses during 16 days of hearings January and February. The judge said that while the government's conduct in the inquiry was not NEW YORK A federal judge upheld the Abscam convictions of four former congressmen and three other persons Friday, rejecting arguments that undercover agents tricked them into committing crimes. UJ3. District Judge George C. Pratt, in an often-scathing 135-page opinion, said corrupt public officials "pose a greater danger to this country than all of the drug traffickers combined." He said such officials "not only betray their constituents, but also contribute to a moral decay in American society that many view as the forerunner of economic, political and social disaster." Friday's ruling stemmed from guilty verdicts against former Reps.

Michael "Ozzie" Myers, Raymond Lederer, John Murphy, and Frank Thompson D-N Angelo Errichetti, a state senator and former mayor of Camden, J. Philadelphia City Councilman Louis Johanson; and Philadelphia lawyer Howard Criden. THE DEFENDANTS generally Ann Landers 6-B Bridge 8-B Business 11-15-A Classified 6-26-C Comics 8-B Crossword 6-B Directory 2-A Editorial 16-A Horoscope 8-B Jumble Letters 17-A Obituaries 13-B Outdoors 2-C Pari-mutuels 2-C People 3-A Sketches 8-B Sports 1-6-C Theaters 11-B TV-Radio 7-B Weather issue. See ABSCAM, 4-A V. 1 i.