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Weinberger: British story on Flight 7 is Soviets'

The Reagan administration Monday denied as ''lies'' a British report that the Korean Air Lines jet shot down by the Soviet Union in September was on an intelligence mission to test Soviet radar. The crash killed 269 people.

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Defense Secretary Caspar Weinberger called the story, in Britain's Sunday Observer newspaper, ''a total set of lies.'' The Observer quoted the magazine Defense Attache as saying KAL Flight 7 entered Soviet airspace to enable Western intelligence to monitor Soviet radar and electronic signals.

Mr. Weinberger contended that the British magazine ''apparently . . . picked up lock, stock, and barrel the total set of lies that the Soviet Union published after the Korean airliner was shot down.''

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