EUROPEIn Britain, the central Bank of England yesterday cut its money-market dealing rate to 10.5 percent from 11 percent, a signal to commercial banks to cut base lending rates to that level. Many quickly did so. Britain's economy has been deep in recession since 1989.... German Chancellor Helmut Kohl yesterday said only a renewed Soviet Union could continue Moscow's arms-control policies and expect Western economic aid. The Soviet Union could make further progress in reducing nuclear weapons and cutting troo p levels only if its republics kept a joint foreign and security policy, he told Parliament.... Soviet Environment Minister Nikolai Vorontsov yesterday said his country needs a vast environmental clean-up. He said about 20 percent of Soviet territory suffered from serious pollution and another 35 percent of the total surface of 8.5 million square miles was affected.... Belfast was hit by a wave of firebomb attacks early yesterday. Seven stores were damaged by incendiary bombs, police said. MIDDLE EAST In Jerusalem, Israel's Cabinet yesterday approved a 1992 state budget proposal with a deficit that could hinder a bid for more economic help from the United States. The Cabinet voted 11-6 to cut all budget items by 3 percent except for defense, which, in the wake of the Gulf War, will receive a boost.... United Nations Secretary-General Javier Perez de Cuellar is expected to suggest this week that Iraq be allowed to sell up to $2.4 billion worth of oil in the next six months to cover emergency humanitari an needs and other costs.
AFRICA In Bloemfontein, South Africa, President Frederik de Klerk yesterday proposed a post-apartheid constitution that would give blacks the right to vote for the first time but deny them outright power. The blueprint was swiftly rejected by Nelson Mandela's African National Congress. The draft constitution Mr. de Klerk presented grants a universal franchise and calls for a multiparty presidency.... In Douala, Cameroon, soldiers yesterday fired tear gas into a crowded newspaper office where 150 journalists wer e protesting government censorship. The confrontation occurred after journalists and their supporters marched through the port city to protest the government's suspension of five independent newspapers that had published articles critical of President Paul Biya.
ASIA AND THE PACIFIC In Bangkok, Cambodian Communist Party hard-liners yesterday endorsed the compromises worked out at last month's peace talks, boosting hopes of ending the 12-year-old Cambodian conflict.... In Beijing, Chinese police yesterday intervened after three visiting US lawmakers tried to stage a mourning ceremony in Tiananmen Square for the 1989 pro-democracy protesters.