Table of Contents

COVER: Airlines say "Happy New Year" with a rousing round of price rollbacks 40 Air travel used to be an expensive way to go, but a new fleet of cut-rate carriers, led by People Express, is now offering low fares from coast to coast and on hundreds of routes in between. The attractive price of tickets has encouraged more people to take more flights to more places than ever. Travelers who used to ride the bus or drive are hopping a plane. See ECONOMY & BUSINESS.

NATION: Elite warriors train to counter terror and fight dirty battles 16 The Administration beefs up the military's Special Forces, but critics question whether they are ready for quick and sure action. Progress intrudes on Palm Springs, President Reagan's New Year's desert retreat. Senator Gary Hart, announcing that he will not run for re-election in Colorado, looks toward the White House in '88. New York City braces for an international literary gala.

WORLD: The U.S. and Israel ponder retaliation for the airport massacres 26 Libya's Gaddafi vows defiance as Washington and Jerusalem agonize over how to hit back for the Rome and Vienna attacks. Meanwhile, the shadowy figure suspected of masterminding those terrorist acts and many others remains on the loose. Pakistan's Zia ends martial law and a 20-year state of emergency. The new year gets off to a bloody start in South Africa.

54 Video A docudrama on legendary Newsman Edward R. Murrow has sparked a debate over its portrait of top CBS executives.

55 Law A New York court defines a medical license as "marital property," adding to a debate on how assets are divided in no-fault divorces.

56 Science In physics, a bizarre new Theory of Everything claims that the four basic forces are composed of tiny pulsing strings.

60 Sport Oklahoma survives Penn State, Miami and Bowl Day as college football celebrates a tidy and singular champ.

62 Education Harvard is embarrassed by some secret CIA funding. For the first time, Columbia selects a woman to be dean of its law school.

67 Music There is a new sound in the high, sweet harmonies of the Judds, a mother and daughter who are classing up the listless country scene.

68 Art Ignored by all but a few loyalists, American Sculptor Augustus Saint-Gaudens receives his due in a retrospective.

74 Essay Everyone learned to kiss from the movies. Now the danger of AIDS troubles actors. Must the movies find new signals of passion?

6 Letters 11 American Scene 39 People 61 Milestones 64 Books 69 Theater 72 Show Business 73 Cinema

COVER: Illustration by Richard Hess