Albania and eight other nations whose entry into the United Nations is sponsored by the Soviet Union ran into a four power road block at Lake Success yesterday, with the outlook growing doubtful that any of them would be accepted. Russia, however, won a diplomatic victory in UNESCO, as she successfully defended Hungary's application for UNESCO membership against a Cuban motion that would have put the Russian satellite in the same excluded category as Spain.

American prosperity is a shaky temporary structure, declared President Truman in a mid-year economic report to Congress and the public yesterday. "Basic adjustments" are called for in wages, prices, and profits, he warned, before inaction produces serious unemployment and business decline.

Target for the Un-American Activities Committee yesterday was Henry A. Wallace when Walter S. Steele, official of the American Coalition of Patriotic, Civic, and Fraternal Societies, testified that Communists are pushing for a third major political party, to be headed by the former Vice-President.

Dutch military forces struck at Indonesia in what they termed "police action" yesterday, but insurgent Republican officials described the situation as a "full scale colonial war." Republican President Soekarno's forces were ordered to "counter-attack" wherever they were attacked.

House arrest all over Palestine for 90,000 Jews was in effect yesterday, as a mine blast in Halfa that killed one and wounded seven persons touched off a third consecutive night of violence in the Holy Land. The explosion occurred shortly after it was announced that 4,500 illegal Jowish immigrants, intercepted on the vessel President Warfield, were being returned to France. French sources had not decided last night whether to let the unwilling immigrants land, and were negotiating with the British.

Anti-poll tax legislation overrode an incipient filibuster in the House yesterday, as a 290 to 112 vote approved the measure and sent it on to the Senate.

Arrest of a Burmese former Japanese occupation official, Bandoola U. Sein, in connection with Sunday's massacre of seven council ministers, was announced in the Rangoon press yesterday.

The weather: Mostly cloudy, scattered showers and gentle winds ending tonight, with little change in temperature.