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MIDDLE EAST The Palestine Liberation Organization will withdraw its guerrillas from part of south Lebanon and allow government troops to take control, officials said yesterday. The Syrian-backed government of President Elias Hrawi plans to send thousands of troops into the area next month.... Iraqi Kurdish leader Massoud Barzani was quoted yesterday in a Turkish newspaper as saying he had reached an agreement with President Saddam Hussein on autonomy for the Iraqi Kurds. A new agreement could persuade hundreds of t h

ousands of Kurds to return home.... Iraqi officials told Britain yesterday they hoped that freed British engineer Douglas Brand would cross into Jordan later in the day, British officials said.

UNITED STATES

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Russian President Boris Yeltsin told a US audience Wednesday he supports independence for the Soviet Baltic republics, and indicated the Russian republic he leads opposes Soviet aid to Cuba.... President Bush is ready to end economic sanctions against South Africa as early as July, according to administration officials, provided Pretoria complies with conditions - including release of political prisoners - outlined in a 1986 US law.... Sen. Edward Kennedy (D) of Massachusetts changed his deposition afte r

it was filed with police investigating rape charges in Florida against his nephew William Kennedy Smith, Assistant Palm Beach County State Attorney Moira Lasch said Wednesday. Court records show he changed the date he left Palm Beach from March 31 to April 1. The state attorney is investigating whether Senator Kennedy should be charged with obstructing the police investigation. Police had visited the Kennedy home March 31 and were told the senator was not there.... Because of the proliferation of arms, US

and other exporters are losing control of the weapons they sell and the technology needed to make them, a report by the congressional Office of Technology Assessment disclosed yesterday. The report noted many firms, facing falling defense spending, have increased foreign sales.

EUROPE

The Polish government warned Wednesday that growing social unrest and political pressure over rising unemployment and falling salaries threatens Poland's economic reforms.... US Secretary of State James Baker III called yesterday at the CSCE meeting in Berlin for unrestricted trade between the West and the former East-bloc nations, arguing that economic barriers must be eliminated to give the free market system a chance to succeed in the emerging democracies.

LOOKING AHEAD

Saturday: Summer Solstice at Carhenge, a monument of junked cars in Alliance, Neb., reminiscent of ancient Stonehenge. Tuesday: The Bolshoi Ballet returns to the US in performances at the Met in New York, through July 6.

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