Table of Contents

COVER: In Iceland, a breakthrough on arms control stumbles over Star Wars 19

Reagan and Gorbachev talk at length on missile reductions, but the summit ends in a stalemate over the Strategic Defense Initiative. Icelanders greet invading summiteers with souvenirs, a swimsuit competition and a pony show. The Soviets take the lead in public relations. At an ancient peacemaking site, Roger Rosenblatt ponders the meaning of the talks. See NATION.

NATION: Republicans try to trim the Democrats' big lead in Governors 38

The G.O.P. hopes that this year's elections will cut into the majority party's 34-16 predominance in state capitals. Former Journalist Bernard Kalb quits his post as State Department spokesman over the Administration's reported "disinformation" scheme. Followers of Right-Wing Extremist Lyndon LaRouche are indicted for credit-card scams in a "fund-raising" campaign.

WORLD: Managua downs a contra cargo plane, and a captured American sings 44

The Sandinistas turn a jungle crash into an electrifying propaganda coup. For the U.S. Congress, nettlesome questions arise over who sponsored the mission and whether the CIA was involved. Suspicions about Damascus' support for terrorism harden in London and Paris. TIME's editors travel to Syria for a rare and wide-ranging interview with President Hafez Assad.

62 Economy & Business

Amid takeover wars, BankAmerica's president resigns. IBM fights the blues. U.S. autoworkers go to school in Japan.

73 Science

A Soviet sub carrying nuclear missiles and powered by two reactors sinks after an explosion but releases no measurable radiation.

74 Religion

Preaching hatred for blacks and Jews, the Christian Identity movement spouts the nation's most corrosive theology.

77 Press

A journalistic era comes to an end as the New York Times names a successor to longtime Executive Editor A.M. Rosenthal

80 Medicine

A test offers early diagnosis of Huntington's disease, but there may be few takers until the fatal genetic disorder can be treated.

84 Sport

After a record rivalry, Gary Kasparov retains his world chess title by a single point. Dueling for America's Cup begins Down Under.

95 Cinema

An absorbing sequel to The Hustler pits Paul Newman against Tom Cruise. In Children of a Lesser God, a new young actress glows.

98 Show Business

Technicians are adding color to black-and-white classics like Casablanca, making Hollywood's top moviemakers see red.

5 Letters 9 American Scene 78 Milestones 83 People 86 Computers 90 Books 97 Theater

Cover: Photograph by David Hume Kennerly