THE WEEK: JULY 16-22

NATION

"MEND IT, BUT DON'T END IT"

After months of seeming to waffle on the issue, President Clinton came down squarely on the side of affirmative action. Declaring that "affirmative action has been good for America," the President vowed to maintain the federal policy because when done right, "it is flexible, it is fair, and it works." Top Republicans were unimpressed and said they would continue to push for a complete scrapping of the policy.

"END IT, YOU CAN'T MEND IT" One of those Republicans did more than just talk. California Governor and presidential aspirant Pete Wilson used his position as head of the University of California board of regents to help steer a measure ending affirmative-action policies at the huge and prestigious nine-campus institution. Demonstrators, including the Rev. Jesse Jackson, protested the decision.

THE SMITH MURDER TRIAL

It took a jury less than three hours on Saturday to find Susan Smith guilty on two counts of murder in the drowning deaths of her two sons last year. The trial lasted but five days. Now the same jury, which could have found Smith guilty of involuntary manslaughter, must decide whether to sentence the South Carolina mother to life in prison or the electric chair.

THE WHITEWATER HEARINGS

Headed by New York's Alfonse D'Amato, a special Senate committee launched yet another investigation into the Clintons' Whitewater financial dealings, a probe Republicans hope will prove politically bruising to the Administration. The initial focus of the hearings -- the handling of documents in deputy counsel Vincent Foster's office by White House aides after Foster's suicide -- broke little new ground. On Saturday the Clintons gave depositions on Whitewater for the second time to independent counsel Kenneth Starr.

FINALLY, A SPENDING-CUT DEAL

Ending weeks of arduous renegotiation, the Senate gave final approval to a $16.3 billion package of spending cuts from the current budget, which President Clinton had vetoed last month. The measure restores funds to key Clinton-backed social programs, and the President will now sign it.

A CONTRACT CLAUSE CRUMPLED

Senate Democrats blocked a sweeping G.O.P. overhaul of the nation's health, safety and environmental laws that seeks to curtail the rulemaking powers of agencies and expand the ability of businesses to challenge regulations. Majority leader Bob Dole failed to muster enough votes to cut off debate, forcing him to shelve the key G.O.P. Contract measure.

SPEAKING OF CONTRACTS

In his weekly radio address, President Clinton chided House Speaker Newt Gingrich for dragging his heels on their agreed-upon commitment to create a nonpartisan panel on political reform. Clinton named John Gardner, the Republican founder of Common Cause, and historian Doris Kearns Goodwin as consultants for such a commission. A Gingrich spokesman called Clinton's remarks a "cheap shot."

THE WACO HEARINGS