News In Brief

O'Neill fires at deadlock on rebel aid, summer jobs

House Speaker Thomas P. O'Neill Jr. moved Tuesday to break a deadlock over undercover aid to Nicaraguan rebels that is holding up a $1.1 billion spending bill which includes military assistance for El Salvador.

Mr. O'Neill, who is opposed to both undercover support of the Nicaraguan rebels and military aid for the Salvadorean regime, said the dispute is holding up needed items such as $100 million for summer youth employment.

The Massachusetts Democrat said he called Senate majority leader Howard Baker (R) of Tennessee and suggested the Nicaraguan covert aid be separated from the rest of the bill so that the other appropriations could be cleared and sent to President Reagan for his signature. O'Neill said Mr. Baker told him he would take the question up with Mr. Reagan.

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