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In Iowa, snowplows Thursday cleared away debris from a thunderstorm that dumped more than a foot of rain, destroying bridges and thousands of acres of corn and soybeans.... Chief Iran-contra prosecutor Lawrence Walsh told the Washington Post he expects to wrap up his $32.5 million investigation of the arms-for-hostages scandal this week and anticipates no further indictments. ECONOMY AND BUSINESS

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The US trade deficit ballooned 16.2 percent in July, reaching its highest level in 20 months, the Commerce Department said yesterday. It was caused by record imports and a steep drop in jetliner sales.... The number of Americans filing first-time unemployment claims climbed by 6,000 the week ending Sept. 5, reaching 400,000, the highest level in four weeks, the government reported yesterday. Analysts had said in advance the increase would reflect in part the impact of a strike at a General Motors parts p lant and the loss of jobs caused by Hurricane Andrew.... British unemployment rose to a seasonally adjusted 9.9 percent in August, a five-year high, the government announced. EUROPE

Faced with an unmanageable flood of immigrants and a violent racist backlash against them, Germany yesterday announced plans to deport thousands of Romanians. Romania has agreed to take back its citizens.... In eastern Germany, police yesterday detained six rightists after they tried for the third night to attack a foreigners' hostel.... Bobby Fischer Wednesday won the ninth game of the $5 million chess rematch between him and Boris Spassky. Fischer now leads 4 games to 2.

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