BOUTROS-GHALI INDICATES HE WILL BOW OUT OF U.N. ELECTION.

Byline: Barbara Crossette The New York Times

Moving a step closer to withdrawing from the race for secretary-general, Boutros Boutros-Ghali said Wednesday that he was suspending his candidacy for re-election ``for the time being,'' but not dropping out completely.

Boutros-Ghali told the Security Council of his decision as reports began to emerge of a strange, last-minute, face-saving effort by the Clinton administration to lure him into leaving office by offering to make him head of an international foundation and give him a new title of secretary-general emeritus. Diplomats familiar with the overture said Boutros-Ghali rejected it.

Wednesday's move by Boutros-Ghali was interpreted by diplomats and some of his advisers as a holding position that could be the first step toward a dignified withdrawal, but would also leave him available should African delegates fail to agree on an alternative candidate.

The suspension of his candidacy will prevent Boutros-Ghali's name from being put to another vote while he makes a final decision on whether to withdraw now, with a large majority of the Security Council still proclaiming support for him.

Diplomats and others said that Boutros-Ghali appears, at least for the moment, to want to keep himself in reserve, especially since the council has yet to receive any formal nominations of alternative candidates from Africa. Following recent tradition, Africans say their region is entitled to two five-year terms.

``We would like to see an African secretary-general who wants to reform the United Nations and lead it into the 21st century,'' said Madeleine Albright, the U.S. delegate, in an interview Wednesday.

``But reality would tell you that if there are no names presented, at some stage the vacuum will be filled by non-African candidates,'' she said. ``That's not a threat. It's just a statement of fact.''

American officials continue to rule out any compromise that will allow Boutros-Ghali to remain as secretary-general, even for an abbreviated term.

But apparently stung by criticisms at home and abroad about how the campaign against Boutros-Ghali is being handled, the administration made him an offer two days before casting a veto against his candidacy.

According to aides to the secretary general and diplomtas, Boutros-Ghali was told by Albright over a private dinner that if he would withdraw from the race he would be given a foundation to run in Geneva.

The American envoy also threw in the promise of the new ``emeritus'' title to take with him.

Neither Albright nor the secretary-general would discuss that dinner, on Nov. 17.

An American official said that the meeting at Boutros-Ghali's Sutton Place residence was a private one, continuing the ``warm relationship'' between the American representative and the secretary-general, and that nothing discussed by them would be made public.