Gift ideas -- art, literature, books for children; Skipping on the yellow bricks; The Wizard of Oz, by L. Frank Baum, illustrated by Michael Hague. New York: Holt , Rinehart and Winston. 219 pp. $18.95.

The book itself folds out in accordion-like fashion from the other half of the house, ending with a vignette of Goldilocks' escape.

What could please a child more this holiday season than the well-loved ''Wizard of Oz'' - reissued here with 38 new full-page illustrations that glow with the brightest colors in the paintbox? Besides high adventure, this story can rightfully claim its place as an American fairy tale, perhaps the nation's first. Its gentle message is worth remembering: All we need and want is within us; we have only to search ourselves to find it.

Michael Hague's fanciful illustration of Winkies, Munchkins, flying monkeys, and the Emerald City will bring smiles to the faces of those too young to read.

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