Time

COVER: The President takes the blame 18

for Iranscam and vows to move forward

A masterly speech and an influx of experienced men in key posts revitalize the embattled Administration. New Chief of Staff Howard Baker scores a hit at the White House and on Capitol Hill. William Webster prepares to head the CIA, while Frank Carlucci rebuilds the NSC. Yet a full recovery is threatened by ongoing investigations of the scandal' s damning details. See NATION.

WORLD: A Soviet proposal to pull 38

medium- range missiles from Europe

Though the prospect disturbs some officials, Gorbachev and Reagan seem determined to make a disarmament deal. -- A TIME exclusive: Dissident Andrei Sakharov' s speeches at a Moscow peace forum. -- An American spying for Israel is sentenced to life in prison. -- Student radicals form the center of opposition to President Chun in South Korea.

PRESS: Days of turbulence, days of 62

change at the network news divisions

Besieged by budget cuts and competition from cable and local stations, CBS, ABC and NBC are re- examining how they go about keeping Americans informed. The sharpest knife is being wielded at cbs, where more than 200 are being fired. Throughout the turmoil, network executives are most concerned about the quality -- and direction -- of their flagship evening news programs.

54

Economy & Business

As oil imports rise, the U. S. may face another energy shock. -- The Kroh real estate empire collapses. -- Should quotas be auctioned?

66

Law

The Supreme Court' s ruling on handicap discrimination has major implications for AIDS victims. -- A ban on "humanist" texts.

69

Religion

Televangelist Jimmy Swaggart makes Pentecostal inroads in Latin America. -- A major U. S. church introduces a divorce ritual.

71

Computers

Carrying as much information as 1,500 floppy disks, the familiar compact disc can now be used as a data bank for personal computers.

72

Education

For some students, the fun in the sun of spring break gives way to work in the slums as campuses experience a renewal of volunteerism.

88

Fashion

Britain' s spirited designer Katharine Hamnett captures better than anyone else the roughed- up elegance of the everyday.

92

Show Business

In California, John Huston, 80, directs Daughter Anjelica in his 37th feature film, James Joyce' s classic story The Dead.

94

Essay

Local governments are telling private clubs to quit barring people -- for example, women. Some clubs are giving in, some are fighting.

10 Letters

12 American Scene

74 People

76 Behavior

78 Medicine

79 Books

83 Music

90 Milestones

93 Theater

Cover: Illustration by Nigel Holmes; photographs, clockwise from top, by Dirck Halstead, Brad Markel -- Gamma/ Liaison and Dennis Brack -- Black Star