YEAR IN REVIEW 5749 YEAR IN REVIEW ISSUES LT. COL. WILLIAM HIGGINS, 44, was purportedly hanged by his pro-Iranian captors in Lebanon in retaliation for Israel's abduction of a Moslem sheik. But American experts concluded that Higgins was most likely killed before the Israeli abduction. ISRAEL'S ABDUCTION of Shi'ite Moslem Sheik Obeid from his apartment in Lebanon sparked an international controversy over terrorism and hostages. Some American leaders, including Senator Robert Dole, criticized Israel for endangering American lives, while many Americans supported Israel's effort to strike back at terrorists. SALMAN RUSHDIE became famous, or infamous, when his novel, "The Satanic Verses," provoked Islamic fundamentalists to issue a death threat for the novelist, who went into hiding in London. JOSEPH CARDINAL GLEMP of Poland exacerbated the Auschwitz convent controversy among Catholics as well as Jews when he expressed anti- Semitic statements in blaming Jews for the stalemate. up the peace process and aban- don violence. But to the frustra- tion of Israeli officials, the PLO has increased its diplomatic stature tremendously by talking soothingly to the West while reassuring its own constituen- cies that its diplomatic machina- tions are simply part of a two- 54 FRIDAY, SEPTEMBER 29, 1989 stage plan to destroy Israel: gain a foothold through a small Palestinian state, then use that turf as a means of launching an attack on the Jewish state. Differences over the PLO, and its credibility, contributed to tensions between the United States and Israel during a year that saw national elections in the two countries take place CARMELITE CONVENT at the Auschwitz death camp sparked a worldwide controversy when Catholic clergy reneged on their pledge to relocate the convent. Catholic-Jewish relations grew tense over the issue. within a week of each other. Israelis, who gave high marks to Ronald Reagan during his tenure, were supportive of George Bush; American Jews tended to favor the Labor Party . in Israel's elections. But in fact, two-thirds of American Jews voted for Michael Dukakis, and more Israelis favored Likud over Labor. Jerusalem was wary of George Bush, never considered par- ticularly pro-Israel during his many years in politics, and was equally anxious about John Sununu as chief of staff and James Baker as secretary of state. Baker's address this spring to the American Israel Public Affairs Committee's an-