Time

COVER: U2, a high- flying band with a 72

conscience, offers rock for the '80s

Their latest album just hit No. 1, their concert tour is the hottest since Springsteen' s, but U2' s blitz has an impact all its own. They have "great songs and great heart," and more: these four musicians from Ireland also draw crowds with their lyrical insistence that rock and social commitment are inseparable. As one of their songs puts it, there are "new dreams tonight." See MUSIC.

NATION: Gorbachev tantalizes the 20

U. S. with a zero- option arms proposal

The Reagan Administration considers the Soviet leader' s proposal for eliminating nuclear missiles from Europe. -- How the zero option grew from a leftist slogan to the main plank of an arms- control agreement. -- Gary Hart, lone political warrior, officially enters the 1988 race. -- Florida prepares for new taxes, while a Texas town, tired of fighting city hall, eliminates it.

WORLD: Embattled South Africa tries 36

a new crackdown, but protests grow

As national elections approach, the Botha government threatens to strike at neighboring countries and bans demonstrations calling for the release of political prisoners. But a public outcry forces Pretoria to beat a strategic retreat. -- Japanese Prime Minister Nakasone' s party suffers its worst + setback in 30 years. -- A long- suppressed Soviet novel recalls the horrors of the Stalin era.

52

Economy & Business

Texaco is in bankruptcy, but the slugfest with Pennzoil goes on. -- A drug bust on Wall Street. -- Fragile recovery in the Philippines.

64

Medicine

A leading New York hospital is embroiled in controversy surrounding the death of Andy Warhol. -- A new report on AIDS in women.

66

Sport

Baseball shakes off its sad start, especially in Milwaukee, where a pair of strangers named Trebelhorn and Nieves lift the Brewers.

71

Law

Precise federal sentencing standards will limit judges but worsen prison crowding. -- CIA Protester Amy Carter goes free.

78

Living

Beverly Hills has prohibited smoking in restaurants, prompting some angry huffing and puffing from the posh city' s nicotine lovers.

80

Books

A thriller and a poignant satire explore the advantages and liabilities of being invisible. -- Mary McCarthy remembers How I Grew.

86

Art

The disputed cleaning of the Sistine Chapel frescoes is not spoiling Michelangelo but revealing his true -- and colorful -- intentions.

88

Video

From Bob Goldthwait to Garry Shandling, offbeat, innovative comics are thriving on cable. -- The last roll call for Hill Street Blues.

9 Letters

15 American Scene

62 Press

62 Milestones

79 Cinema

85 Education

92 People

Cover: Photograph by Neal Preston -- Camera 5.

Lettering by Ulf Skogsbergh