THE WEEK: JANUARY 7-13

NATION

MORE WHITEWATER RAPIDS

The Senate Whitewater Committee continued to press its case against Hillary Rodham Clinton--with limited success. A lawyer who once worked under Mrs. Clinton at the Rose Law Firm disputed her assertion that it was he who brought in as a client the S&L at the heart of Whitewater. The lawyer supported the First Lady's recollection that her work on a stock offering for the S&L was mostly supervisory but said he could not provide information about other work in which he did not take part. At a news conference President Clinton said his wife would continue to "do what is necessary" to answer all questions. The President acknowledged that the legal bills the couple is amassing over Whitewater and the Paula Jones lawsuit could bankrupt the family.

THE RETURN OF PAULA JONES

Tossing aside the President's argument that the Chief Executive should not be distracted by private lawsuits during his tenure, a federal appeals court ruled that Paula Jones may bring to trial her sexual-harassment case against Bill Clinton without waiting until he vacates the Oval Office. Clinton's lawyers said they would appeal, thereby assuring that Jones' claim will not be heard until well past the November elections.

THE NO-BUDGET SAGA GOES ON

Budget negotiations between President Clinton and congressional leaders recessed without an accord, amid speculation, fueled by Speaker Newt Gingrich's pessimistic assessment, that the talks may have broken down. At his news conference the President insisted a budget deal was reachable if policy differences over such key programs as Medicare and Medicaid could be put aside by Republicans and fought out later at the November elections. Members of Congress took advantage of a January recess to scurry home and sound out voters.

WELFARE FIX NIXED

As promised, President Clinton vetoed the sweeping G.O.P.-sponsored overhaul of the welfare system that would have given lump-sum federal grants and shifted basic responsibilities to the states. Clinton said the legislation came packaged with too many spending cuts and too few incentives to move people from welfare to work.

LET IT SNOW, LET IT SNOW...

Residents and municipalities up and down the East Coast spent the week digging out from the Blizzard of '96, a huge and paralyzing storm system that dumped record or near record snowfalls on major metropolitan areas, including Boston, New York, Philadelphia, Baltimore and Washington. At least 100 deaths were attributed to the weather.

CURBING INDECENCY

Refusing to review a First Amendment appeal from a coalition of broadcasters and civil libertarians, the U.S. Supreme Court effectively let stand a lower federal court decision upholding a federal ban on indecent TV and radio broadcasts during daytime and prime-time schedules. The Justices are set to hear arguments in February on another set of contentious federal rules--curbs that target indecency on cable TV.

SENIOR SUICIDE