BASKING RIDGE, N.J. (AP) _ More than 200 employees of American Telephone & Telegraph Co. offered suggestions to the company's president after an in-house magazine published a picture many called racially insensitive.

''Some people wanted more intensive diversity training, others wanted to see a larger representation of African-American people throughout the company,'' spokeswoman Gail Purpura said Wednesday. ''Some people want to see Martin Luther King's birthday made a company holiday.''

A drawing on the Fun'N'Games page of September's AT&T Focus shows a globe with characters on several continents conversing by telephone. All the characters are human except the one standing on Africa, which is a monkey.

Reacting to widespread criticism, AT&T President Robert Allen set up a toll-free telephone line on Sept. 17 to field calls from employees with suggestions and complaints, Purpura said.

But AT&T has yet to act on any of the suggestions, Purpura said, adding: ''We're not doing any knee-jerk responses.''