BOSTON--Standing between the flags of the United States and the Commonwealth of Massachusetts at a State House rally yesterday, Chinese immigrants--most speaking through interpreters--urged the Legislature to reform unemployment insurance practices.

The rally, sponsored by the Chinese Progressive Alliance Worker's Center (CPAWC), called for support of two bills that would increase unemployment compensation and require the Department of Employment Training (DET) to hire translators for non-English speaking clients.

"As an immigrant, as part of the Chinese-American community, and as a minority, I cannot deny the needs of my community," said Yaping Joyce Liao '91 of the newly-revived Radcliffe Asian Women's Group (RAWG). Liao, who emigrated from Taiwan at age 12, told the 100-member audience that her organization was proud to support the legislation.

RAWG joined the Greater Boston Legal Services, Local 26 and the International Ladies Garment Workers Union in backing the legislative efforts of CPAWC, a Chinatown based community organization. RAWG, the only area student group actively involved in the lobbying effort, participated with CPAWC in Harvard's multi-ethnic VISIONS conference in February, said Liao.

"You are all human beings. You deserve all the rights that any Americans have," she told fellow immigrants, speaking in both English and the Mandarin Chinese dialect.

Under current Massachusetts law, most unemployed workers are granted weekly benefits roughly equivalent to 50 percent of their average weekly wage for the previous year.

Human service advocates said yesterday that the present formula for determining benefits, which has not been amended in 50 years, does not meet the needs of low-income and seasonal workers, whose jobs are often affected by work slowdowns.

"Fifty percent of low-income is almost nothing. I don't know how they can expect us to live on that," said Kwai Ho Tam, an unemployed garment worker from Boston who spoke through an interpreter.

The proposed legislation, which will go before a hearing of the Joint Commerceand Labor Committee this morning, would establisha new formula granting low-income claimants up to80 percent of their weekly wage.

A second bill, which will also be heard thismorning, would require the state to providetranslators for non-English speaking peopleseeking unemployment benefits or filing appealsthrough the Department of Employment Training.

According to current practice, the DET does notprovide translators to claimants, leaving manyimmigrants with no way to appeal an unfavorabledecision on unemployment benefits, advocates ofthe proposed legislation said yesterday.

Rep. Robert A. Durand (D-Marlborough),co-sponsor of the benefits bill, said yesterday hethought both bills would be favorably reported outof committee, but that his proposal would be morecontroversial because it calls for the state toprovide more money at a time of fiscal constraint.

Leaders of several Boston area religous, laborand political groups attended the late-afternoonrally. Dominic Bozzotto, president of the Local 26union, which represents Harvard food serviceworkers, praised organizers.

"These people have had the incredible attentionspan to fight the state government, and they havehad the vision to take the issue head-on and helpeverybody on an issue that had been ignored,"Bozzotto said.

"Shame on people like me who say they'reprogressive and hadn't already thought of thislegislation," he said.

Bozzotto also said that the legislation wouldnot affect Harvard food service workers, becauseof a Reagan Administration ruling which Bozzottosaid denies unemployment benefits to many seasonalemployees