GENEVA, Italy (AP) _ Eduardo Bengoechea of Argentina needed only 63 minutes to upset No. 3 seed Jordi Arrese of Spain 6-1, 6-2 in quarterfinal action of the $220,000 Geneva Open tennis tournament Friday.

In other quarterfinal play, Horacio De La Pena of Argentina defeated Sweden's Christian Bergstroem 6-2, 7-5; top-seeded Kent Carlsson of Sweden beat seventh-seeded Fernando Luna of Spain 6-1, 6-2; and Czechoslovakia's Marian Vajda ousted Pedro Rebolledo of Chile 6-3, 6-2.

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BARI, Italy (AP) - Top-seeded Thomas Muster of Austria and No. 3 Lawson Ducan advanced to the semifinals of the $123,400 Puglia tennis championships Friday.

Muster downed unseeded Jimmy Brown 6-3, 6-2 and Duncan eliminated Christian Miniussi of Argentina 6-0, 6-2.

In other quarterfinals, Thierry Champion of France upset second-seeded Alberto Mancini of Argentina 6-3, 4-6, 6-2, and Marcelo Filippini of Uruguay eliminated Thierry Tulasne of France 6-4, 6-3.

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COLUMBUS, Ohio (AP) - Matt's Scooter ran the fastest mile in harness horse history during a time trial Friday, the U.S. Trotting Association announced.

Matt's Scooter was timed in 1:48 2-5 in Kentucky at Lexington's Red Mile in a race against the clock, the USTA said.

Mike Lachance was in the sulky as Matt's Scotter broke the previous record of 1:49 1-5 set by Niatross on the same track, Oct. 1, 1980.

Matt's Scotter, a 3-year-old sired by Direct Scooter and purchased at a yearling sale for $17,100, is owned by Canadians Gordon H. Rumpel, Illa L. Rumpel and Charles Juravinski. The horse is currently second on the 1988 money -winning list with $1,231,161.

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SOUTHFIELD, Mich. (AP) - Contract negotiations between the Minnesota North Stars and Mike Modano have been discontinued, the agent for the NHL's No. 1 draft choice said Friday. ''As a result, it appears that Modano will be playing hockey this coming season for the Prince Albert Raiders of the Western Hockey League,'' said agent Howard J. Gourwitz.

Dean Lombardi, North Stars assistant general manager, said he last talked to Gourwitz on Thursday and has not heard that Gourwitz has cut off negotiations.

Modano said he is disappointed and frustrated by what he called Minnesota's lack of interest in signing him.

''All other first overall choices always signed their contracts in July,'' Modano said. ''But the North Stars didn't even send us a first offer until August.''

Gourwitz said the breakdown in the negotiations was due to the North Stars' failure to negotiate an appropriate contract for a No. 1 draft choice. For instance, Gourwitz said, other recent first-round picks' contracts contained a $100,000 bonus to reward the player if he was chosen Rookie of the Year, but the North Stars' have offered Modano $15,000 for winning the award.

''That type of negotiating policy unfortunately existed throughout our attempts to finalize Mike's contract,'' Gourwitz said. ''In fact, in their last offer to Modano, the club offered even less than in its prior offer.''

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NEW YORK (AP) - Jockey Angel Cordero, Jr. withdrew his appeal of the 10-day suspension levied against him by the Saratoga stewards for careless riding aboard Fourstrdave in the Gallant man Stakes on Aug. 22.

Cordero will be suspended effective Sept. 26 through and including October 5.

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NEW YORK (AP) - Manufacturers Hanover bank is pulling out as a sponsor of the Westchester Classic golf tournament, the PGA event's executive committee announced Friday.

The executive committee announced the bank has decided to withdraw as a sponsor when its current contract expires next year.

The bank has been a sponsor for 10 years, helping the tournament raise more than $10.6 million in charity for participating area hospitals in that time. In its 21-year history the event has raised $14.1 million for the hospitals.

Escalating costs produced the decision to end the sponsorship of the tournament, said Charles H. McCabe Jr., an executive vice president of the bank.