Time

COVER: As Reagan' s era recedes, a new 28

generation considers its political options

With only 22 months left to the Reagan presidency, the 1988 campaign is coalescing, auguring the start of another cycle in U. S. history. Candidates talk of moving Government away from conservatism toward activism. Will the new epoch herald a return to a spirit of engagement? TIME' s Lance Morrow examines Reagan' s legacy and ponders the future. See ESSAY.

AIDS: Testing for the dread disease is 24

proposed for millions of blood recipients

In a series of actions on the epidemic, the Federal Government advises tests for some transfusion recipients who received unscreened blood, issues a controversial education plan and approves the drug AZT for treatment of some AIDS patients. In France, a researcher has injected himself with a potential AIDS vaccine, a small but crucial step in experimentation on humans. See NATION.

BUSINESS: New smart phones are 50

changing the way America communicates

A torrent of technology is turning the plain old telephone and its push- + button heirs into sophisticated electronic instruments. Among other things, they block out unwanted calls and listen to voice commands. -- Fujitsu drops its bid for Fairchild. -- Wall Street' s spreading scandal fells Stock Trader Boyd Jefferies. -- Independent filmmakers steal the scene in Hollywood.

20

Nation

After intense preparation, Reagan holds a "dull" news conference -- but that was what he wanted. -- Deaver is indicted for perjury.

38

World

As Congress wavers, Sandinista confidence grows. -- U. S. Jewish leaders go to Israel. -- Zia admits Pakistan can build the Bomb.

63

Sexes

As VCRs bring X- rated films into the bedroom, women are developing a taste for porn and pushing for a softer, less sexist product.

71

Books

Walker Percy' s Thanatos Syndrome pits behavioral engineering against humanity. -- Sidney Hook is triumphantly Out of Step.

77

Food

Potato chips, America' s favorite fattening munch, thrive despite the fitness trend, with proliferating varieties of shapes and flavors.

79

Video

Will Maddie and David get together? The answer may be a while in coming on Moonlighting, TV' s most dilatory hit show.

80

Music

At 51, Seiji Ozawa of the Boston Symphony is at the top of his profession. Yet the Japanese conductor remains a man of two worlds.

84

Sport

A national event with a regional flavor, college basketball' s Final Four is the most consistently satisfying championship on the calendar.

8 Letters

18 American Scene

62 Medicine

65 Press

66 People

70 Religion

74 Health & Fitness

81 Design

83 Theater

83 Milestones

Cover: Collage by Robert Rauschenberg