MOSHE DAYAN, 66, DIES IN ISRAEL; HERO OF WAR, ARCHITECT OF PEACE

Moshe Dayan, the Israeli soldier-statesman, died of a heart ailment today in Tel Aviv's Sheba Medical Center. He was 66 years old.

Mr. Dayan was rushed to the medical center around midnight last night, complaining of chest pains and shortness of breath. A former Chief of Staff, Defense Minister and Foreign Minister, he was an architect of Israel's victories in the 1967 and 1973 wars as well as the Camp David accords that led to the peace treaty with Egypt.

He resigned as Foreign Minister in October 1979, citing differences with Prime Minister Menachem Begin over policy toward the Palestinian Arabs in the occupied West Bank and Gaza Strip.

Source: New York Times

SADAT ASSASSINATED AT ARMY PARADE AS MEN AMID RANKS FIRE INTO STANDS

President Anwar el-Sadat of Egypt was shot and killed today by a group of men in military uniforms who hurled hand grenades and fired rifles at him as he watched a military parade commemorating the 1973 war against Israel. Vice President Hosni Mubarak, in announcing Mr. Sadat's death, said Egypt's treaties and international commitments would be respected. He said the Speaker of Parliament, Sufi Abu Taleb, would serve as interim President pending an election in 60 days.

The assassins' bullets ended the life of a man who earned a reputation for making bold decisions in foreign affairs, a reputation based in large part on his decision in 1977 to journey to the camp of Egypt's foe, Israel, to make peace. Regarded as an interim ruler when he came to power in 1970 on the death of Gamal Abdel Nasser, Mr. Sadat forged his own regime and ran Egypt single-handedly. He was bent on moving this impoverished country into the late 20th century, a drive that led him to abandon an alliance with the Soviet Union and embrace the West.

Of humble origin, Anwar el-Sadat became a statesman known for daring actions. Obituary, pages A8 and A9. stand with bullets while thousands of horrified people - officials, diplomats and journalists, including this correspondent - looked on. Killers' Identity Not Disclosed

Information gathered from a number of sources indicated that eight persons had been killed and 27 wounded in the attack. Later reports, all unconfirmed, put the toll at 11 dead and 38 wounded. The authorities did not disclose the identity of the assassins. They were being interrogated, and there were no clear indications whether the attack was to have been part of a coup attempt. In Washington, American officials said an army major, a lieutenant and four enlisted men had been involved in the attack. The major and two of the soldiers were killed and the others captured, the officials said. The assassination followed a recent crackdown by Mr. Sadat against religious extremists and other political opponents. There were unverifiable reports that some members of the armed forces had also been detained.

Those standing nearby at the parade today said six to eight soldiers riding in a truck towing an artillery piece had broken away from the line of march and walked purposefully toward the reviewing stand. Onlookers thought the procession was part of the pageant. Suddenly, a hand grenade exploded and bursts of rifle fire erupted while French-made Mirage jets screeched overhead. The 62-year-old leader was rushed to Maadi Military Hospital by helicopter and died several hours later.

A medical bulletin said he might have been hit by as many as five bullets and shrapnel fragments. The bulletin said he had no heartbeat when he arrived at the hospital. It attributed his death, at 2:40 P.M. (8:40 A.M. New York time), to ''violent nervous shock and internal bleeding in the chest cavity, where the left lung and major blood vessels below it were torn.''

The death of Mr. Sadat raised serious questions about the direction the nation would now take. At least for the time being, affairs of state are expected to be run largely by Vice President Mubarak, a longtime associate who promptly took over direction of the armed forces after the President died. Egypt's ruling National Democratic Party announced that Vice President Mub arak would be its candidate in the presidential election. Mr. Mubarek, in his broadcast announcing Mr. Sadat's death seven hours after the assassination, indicated that Egypt would continue to respect the peace treaty with Israel. ''I hereby declare,'' he said, ''in the name of the great soul passing away and in the name of the people, its constitutional institutions and its armed forces, that we are committed to all charters, treaties, and international obligations that Egypt has concluded.'' Security police patrolled Cairo's streets, nearly empty except for some shoppers because of the holiday marking the 1973 war, and government buildings were being closely guarded. Regular television programming was canceled after the announcement of Mr. Sadat's death and was replaced by readings from the Koran and film clips of his achievements - the 1973 war against Israel, which Mr. Sadat said restored Egyptian dignity after its defeat in 1967, the peace treaty with Israel and other milestones. No film of the attack on the reviewing stand at today's parade was shown on Egyptian television. Reviewing Stand Awash in Blood

Within seconds of the attack, the reviewing stand was awash in blood. Bemedaled officials dived for cover. Screams and panic followed as guests tried to flee, tipping over chairs. Some were crushed under foot. Others, shocked and stunned, stood riveted. This correspondent saw one assailant, a stocky, dark-haired man, standing in a half crouch, firing a rifle into the stand used by Mr. Sadat, who was wearing black leather boots and military attire crossed by a green sash. Some onlookers reported a short, fierce exchange of fire between the killers and Mr. Sadat's security men. Others said the attackers had be en overcome by some of the thousands of military men in the area. While spectators sought a way out, the reviewing stand for a few seconds was nearly empty. Flanked on each side by displays of sleek missiles, the stand was a blood-soaked horror.

Mr. Sadat was promptly carried away, but others felled by bullets remained writhing on the ground. A few did not move. One man, seriously wounded, was slumped over a railing separating Mr. Sadat and his party from the parade about 20 yards away. Among those hit was reported to be Bishop Samuel, whom Mr. Sadat had named one of five clerics to run the Coptic Christians' affairs after he deposed their Pope, Sheunda III. The bishop was later reported to have died. Others said to have died were two presidential aides - Mohammed Rashwan, the official photographer, and Sayed Marei, a confidant. The Belgian Ambassador, Claude Ruelle, was seriously wounded, and three American military officers were hurt.

Egypt's Defense Minister, Gen. Abdel Halim Abu Ghazala, who had opened the parade with a speech, stood in the midst of the carnage. His face was bleeding, his gold-braided uniform was blood-soaked. He waved away attempts to assist him and began issuing orders. Soldiers wearing red berets and perfectly creased uniforms promptly joined hands to cordon off the scene of the attack, widening the circle as more soldiers arrived. Some of the soliders were sobbing, a few screamed hysterically, others looked dumbfounded.

Overhead, the air show continued. Planes looped and swerved and dived and arced and sent colorful sprays of vapor over the pandemonium below. The roar of engines drowned out the screams and the clatter of chairs. The parade ground, which had witnessed a joyful procession of Egypt's most advanced arms as well as the colorful camel corps, with its turbaned soldiers, and the cavalry, with its sleek, elegant Arabian horses, was littered with little Egyptian souvenir flags dropped by panicked guests. As members of military bands scattered, the brilliant sun beamed off shiny, yellow tubas and other brass instruments.

The Egyptian military establishment has long been regarded as the ingredient needed by any leader to remain in power. Diplomatic and military analysts said that Mr. Sadat had the support of the military and that it assured the stability of his regime and permitted him to take daring steps, such as the peace overture to Israel and, finally, the peace treaty. In the absence of information, it was hard to tell whether the assassins represented a disenchantment with Mr. Sadat within the military. Speculation abounded. Some thought the attackers, who many felt must have kno wn that they were on a suicide mission, might be Moslem fundamentalis ts opposed to the alliance with Israel and to Mr. Sadat's recen t crackdown. About a month ago, he ordered the arrest of some 1,500 Coptic and Moslem extremists, along with some of his political opponents. He said they had fomented sectarian strife and endangered his efforts to bring democracy to Egypt. A devout Moslem, Mr. Sadat was harsh toward fundamentalist groups, such as the Moslem Brotherhood and the Islamic Association. He banned both groups, calling them illegal. He said that he would not tolerate mixing religion and politics and that these groups were using mosques to denounce him.

The published names of those arrested in the crackdown did not include those of military personnel. But there were reports that some of those detained were in the armed forces. After Mr. Sadat's helicopter had left the scene, diplomats rushed to their limousines. Soldiers cleared the grounds and drove away the stunned spectators. Ambulances wailed, women clutching their children raced away. And the airshow above continued.

Early in the parade, a rocketlike object had been launched. It rained down Egyptian flags and portraits of Mr. Sadat hanging from tiny parachutes that were whipped by the wind. Most of them floated over a nearby housing development called Nasser City. As the grounds were being cleared, one of the parachuted portraits was seen hanging from a flag pole on which it had become impaled in landing. The portrait of Mr. Sadat had been torn by the sharp tip of the Egyptian flag that was fluttering from it.

Source: New York Times

A South African Rebel Is Killed in Zimbabwe

A prominent South African nationalist guerrilla leader, Joe Gqabi, was assassinated by gunfire today as he backed his car out of the gates of his home in a suburb of Salisbury, the Government announced.

The administration of Robert Mugabe, Prime Minister and former Rhodesian guerrilla leader, issued a statement accusing South Africa of the assassination as part of a grand design to crush opposition at home and abroad to its racial policies.

Mr. Gqabi, the representative in Zimbabwe of the African Nationalist Congress and the target of a previous assassination attempt here, was shot in the head and chest in suburban Ashdowne Park. The Government statement, put out by Information Minister Nathan M. Shamuyarira, pledged Zimbabwe's continuing support ''for the just fight.''

The statement said that 18 cartridges had been found amid shattered glass fragments. A spokesman said he could not confirm reports that an Israeli-made Uzi submachine gun had been found at the scene, but he said that the Uzi uses similar ammunition.

Source: New York Times

U.S. HALTS ECONOMIC AID TO NICARAGUA

Washington, April 1 -The United States today terminated the remaining $15 million in economic aid for Nicaragua because of that country's assistance to guerrillas in El Salvador, but held out the possibility of an early resumption of aid if the Nicaraguans continued their recent efforts to avoid involvement in the Salvadoran situation.

A statemnet issued by the State Department culminated a long policy review on what to do about aid to Nicaragua.

Under United States law, the Administration is required to cancel all aid if Nicaragua contributed to "violence" in another country.

Senator Jesse Helms, republican of North Carolina, who is chairman of the Foreign Relations subcommittee on Latin America, had pressed for the cutoff because of Cuban and other leftist connections in the Nicaraguan Government. Part of a $75 Million Program

The Administration, under the law, could also have demanded immediate repayment of the $60 million in loans already extended to Nicaragua under a $75 million program approved by Congress last year.

But the State Department announced that in order to retain influence in Nicaragua and to continue incentives for moderates there, the United States would not call in those loans.

Paradoxically, the decision to terminate the remaining $15 million in aid came as the State Department said that in the last few weels NIcaragua had virtually halted all flow of arms from its territory insurgents in El Salvador

The statement, read by William J. Dyess, a department spokesman said that the Reagan Administration had made "strong representations to the NIcaraguans to cease military support to the Salvadoran guerrillas. " Their response has been positive", he said. "We have no hard evidence of arms movements through Nicaragua during the past few weeks, and propaganda and some other support activities have been curtailed." Concern Voiced on "Other Support"

"We remain concerned, however, that some arms traffic may be continuing and that other support very probably continues,"he said.

State Department officials said that this "other support" included political and logistics help for the guerrillas, but Mr. Dyess refused to be more precise.

The Administration in February made public captured documents to demonstrate that the Salvadoran insurgents had received arms shipments from Vietnam, Cuba, and other Soviet-bloc countries by way of Nicaragua. The Carter Administration, shortly before it left office, suspended the $15 million pending a study.

The issue of whether the aid would be terminated had become a major problem because of a desire to help out the private sector and other moderates in Nicaragua and not push them closer to CUba. Important Interests at Stake Mr. Dyess said that "important United States security interests are at stake on the region."

"We want to encourage a continuation of recent favorable trends with regard to Nicarguan support for the Salvadoran guerrillas ," he declared.

"We also want to continue to assist moderate forces in Nicaragua which are resisting Marxist domination," he said. "working towards a democratic alternative, and keeping alive the private sector."

Mr. Dyess said the United States was considering a resumption of Food for Peace aid and additional development assistance in the future "if favorable trends continue there."

Source: New York Times

AFGHAN LEADER IN MOSCOW

Prime Minister Babrak Karmal of Afghanistan with Leonid I. Brezhnev, the Soviet leader, before their meeting yesterday. A joint statement said that Soviet troops, in Afghanistan since 1979, would not be withdrawn until ''outside aggression'' and ''subversive actions from abroad'' were halted.

Source: New York Times

LEADERS OF 37 NATIONS AND P.L.O. TO OPEN TALKS TODAY

Leaders of 37 Moslem nations and the Palestine Liberation Organization converged on this resort city today for tomorrow's opening of the Islamic summit conference, which is expected to focus on collective action against Israel. The participants' hopes of negotiating an end to the Iran-Iraq war appear to have been dashed by Iran's refusal to attend the talks. A five-man delegation returned from Teheran today after having failed to persuade the Iranians to reconsider their boycott of the meeting.

Conference sources said the Islamic nations had hoped to mediate the four-month-old war between Iran and Iraq. But Ayatollah Ruhollah Khomeini, the Iranian leader, said yesterday that Iran would boycott the conference because President Saddam Hussein of Iraq would be present. Saudi Arabia, the Persian Gulf's largest oil exporter and the host for the conference, has expressed concern that the war might spread to neighboring countries.

A number of Moslem nations besides Iran will not be represented at the conference. Libya is boycotting the meeting to express its displeasure over the basing of United States radar surveillance planes in Saudi Arabia since the outbreak of the Persian Gulf war. Afghanistan was banned from the conference because its Sovietbacked Government is trying, with the help of Soviet troops, to put down Moslem rebels. Egypt was excluded because of its peace treaty with Israel.

The summit meeting will hold its opening session tomorrow in the open-air courtyard of the Grand Mosque of Mecca, birthplace of Islam. Security was extremely tight in the area, the site of fighting a year ago between Saudi security forces and Moslem extremists who occupied the mosque.

The agenda calls for talks on the Palestinian cause and ways of putting pressure on Israel to yield Arab territories occupied during the 1967 Mideast war. The Islamic nations are especially concerned about Israel's control of largely Arab East Jerusalem, which contains one of Islam's holiest shrines, the Al Aksa Mosque. The conference, including nations representing some 800 million Moslems, is calling itself the ''Palestine and Jerusalem summit'' and is expected to reach a rapid consensus on an anti-Israeli program, a Saudi delegate said. ''While the aim of the summit is to put Islamic 'swords into plowshares,' resolutions on economic and political sanctions against the enemies of the Islamic nations are perfectly relevant,'' he said.

No official indication was given of specific actions to put pressure on Israel. But political sources said the campaign would probably be directed against Israel's supporters in Western Europe and the United States.

Source: New York Times

KISSINGER URGES U.S. POST MIDEAST FORCE

Former Secretary of State Henry A. Kissinger urged today that the United States enhance its military presence in the Middle East to counter growing Soviet activity there. Speaking at a news conference midway through what he has repeatedly termed a private visit to the area, Mr. Kissinger said that no regional leader could have confidence in a Rapid Deployment Force, as envisioned by President Carter, that remained in the United States without concrete facilities on the spot.

He also urged that West European and American policies on the Middle East be coordinated; he rejected recent European stands favoring Palestinian self-determination, or statehood, dismissing ''the theory that if we are going to get a Palestinian state, it would quickly or relatively quickly cause the problems in the Middle East to disappear.'' ''The vital interest of the United States and Europe cannot be separated,'' he said. ''Therefore, I consider it impossible that there can be two different approaches that are both correct.''

Although the former secretary has no official standing in the President-elect Ronald Reagan's administration, he is expected to brief Mr. Reagan and his staff and therefore is being received as an important figure. Traveling on the private jet of William S. Paley, chairman of the board of CBS Inc., Mr. Kissinger saw President Anwar el-Sadat of Egypt last week in Cairo, flew to Somalia for a talk with President Mohammed Siad Barre and during two days in Israel met with a range of Government and opposition leaders, including Prime Minister Menachem Begin, Foreign Minister Yitzhak Shamir, Agriculture Minister Ariel Sharon, former Prime Minister Yitzhak Rabin, Shimon Peres, leader of the oppostion Labor Party, and former Foreign Minister Moshe Dayan.

He toured East and West Jerusalem with Mayor Teddy Kollek and said the city should remain united but did not specify under whose sovereignty. He flew to the Etzion Airfield, the modern Israeli base in a slice of the Sinai that is to be returned to Egypt next year. That trip, with Israeli military officers, raised excited speculation in the Israeli press that he would recommend to Mr. Reagan that the United States use at least some of the base. But the former secretary appeared to dismiss the idea at his news conference by reporting his impression that Egypt would not allow it.

He did call for an American military role in the region, however. ''If you look at the map,'' he said, ''you see a large Soviet presence in Afghanistan, a large Soviet-supported presence in Ethiopia, Soviet-supported operations out of Libya, and I do not think that the leaders of this area who are concerned about this can visualize the concept of a Rapid Deployment Force that comes from the United States, 8,000 miles away, into what?'' He urged two steps: ''One is to put some visible American presence into this perimeter along the lines of the facilities that have already been negotiated by the Carter Administration, and they should now be given some concrete content. That would at least indicate that we are there, and that attacking key countries is not a matter in which the United States can be disinterested. Secondly, we require for our own country a strategic doctrine that enables us to be relevant to these crises, together with other interested countries.''

Source: New York Times

Mrs. Thatcher Snubs Five Who Defied Olympic Ban

Prime Minister Margaret Thatcher today snubbed five Olympic gold-medal winners who defied her request to boycott the Moscow Games by deciding not to recommend that they be given awards in Queen Elizabeth's New Year's Honors List.

''The Government advised them not to go for very, very good reasons,'' said Mrs. Thatcher, who supported President Carter's decision to boycott the Olympics because of the Soviet intervention in Afghanistan.

She added: ''We felt very strongly indeed that to go to the Olympics, which is an ideal, would be used by Moscow to indicate that the rest of the world approved of her policies. We took a very firm line. We could not possibly go back on our advice, which was totally and utterly right.''

The gold medalists were the sprinter Alan Wells, two middledistance runners, Sebastian Coe and Steve Ovett, a decathlon athlete, Daley Thompson, and the swimmer Duncan Goodhew.

Source: New York Times