Died. Paulo Picasso, 54, only legitimate child of Pablo Picasso; of blood poisoning; in a Paris hospital. Joint heir with Picasso's widow, Jacqueline, to the artist's priceless collection of paintings, "Paulo" was unsuccessful in denying the claims of his father's three illegitimate children to a share in the estate. Young Picasso lived wanly in the massive shadow of his father, helping out occasionally as handyman and chauffeur. His own son, Pablito, died in agony three months after drinking bleaching fluid because he was barred from his grandfather's villa when the artist died.

Died. Oswald G. Nelson, 68, the "Ozzie" of Ozzie and Harriet; eight months after surgery for liver cancer; in Hollywood. Crewcut, relentlessly wholesome Ozzie Nelson was the archetypal all-American boy. Born in Jersey City, he became the nation's youngest-ever Eagle Scout at 13, starred as a quarterback at Rutgers and worked his way through law school by moonlighting as a bandleader. In 1935 he married his comely singer-emcee Harriet Hilliard; in their radio adventures, which began in 1944, he was the cheerful, slightly bemused pipe-and-slippers family man, she the sweetly understanding helpmate steering nun through suburbia's little traumas. Sons David and Ricky joined the show in 1949, further boosting its popularity and helping to start the Nelsons' marathon 1952-66 run on TV.

Died. Eisaku Sato, 74, Premier of Japan from 1964 to 1972; of complications following a stroke; in Tokyo. Son of a sake brewer and brother of Nobusuke Kishi, Japan's Prime Minister from 1957 to 1960, Sato was a master of the Japanese art of consensus, which he used to rule the country's dominant but faction-ridden Liberal-Democratic Party and manage a policy of government-assisted industrial growth that transformed Japan into an economic superpower. The greatest coup of his steadfastly pro-U.S. foreign policy came in 1969 when the Nixon Administration made an agreement to return Okinawa to Japanese sovereignty, but his political position was soon badly shaken by a surprise shokku: President Nixon's rapprochement with China in 1971. A year later, Sato retired near the end of his fourth term in a mood of disappointment that was only partially lifted in 1974, when he was awarded the Nobel Peace Prize for his determined antimilitarism.

Died. James Laver, 76, British sartorial scholar whose encyclopedic knowledge of historic costume and contemporary fashion earned his books and articles a wide following; in a fire in his London apartment. Laver's witty analyses of the relationship of style to social trends sometimes led to some imaginative conclusions. "The disappearance of corsets," he once wrote, "is always accompanied by two related phenomena--promiscuity and an inflated currency. No corsets, bad money and general moral laxity."

Died. Alvin H. Hansen, 87, economist who pioneered the acceptance of Keynesian theory in the U.S.; in Alexandria, Va. South Dakota-born Hansen was the earliest important American advocate of the then-radical argument set forth by British Economist John Maynard Keynes in his 1936 work, General Theory of Employment, Interest, and Money: that government should take an active role in manipulating the economy through tax and spending policy to maintain high employment, even at the cost of mounting debt and added inflation. As a Roosevelt brain-truster during the New Deal, and as a consultant to various Washington agencies in the 1940s, he was instrumental in turning Keynes' ideas into national policy. At Harvard, where he held the prestigious Littauer chair in political economy from 1937 to 1956, Hansen taught many of today's top economists, among them Paul W. McCracken and Paul A. Samuelson.

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