A man wanted in connection with the 1973 kidnapping, slaying and dismemberment here of a Mexico City businessman has been arrested in Newport News, Va., where he was teaching history and coaching basketball at a Catholic high school under an assumed name.

Thurston Drew Shrader was charged in a 1975 indictment with kidnaping conspiracy, making false statements and obstruction of justice in the abduction of Raul Hernandez Bustamante at Dulles International Airport and his subsequent slaying in Maryland.

Shrader was arrested last week at a Newport News ball park and taken to Alexandria, where he is being held without bond in the city jail, according to U.S. Attorney William B. Cummings.

Until Shrader's arrest, Cummings said the suspectnwas teaching at Peninsula Catholic High School under the name of T. Alexander Marbury. But Marianne Roberson, the Newport News Daily Press reporter who first wrote of Shrader's arrest, said Shrader does not have a college degree.

Michael T. McCormick, Peninsula's principal, said Shrader came to the school in August, 1976, with "impeccable credentials and letters of recommendations from other principles and university professors." In addition, McCormick said, he had an official transcript of graduate work done at Radford College in Radford, Va.

Shrader, known to teachers and students as T. Marbury, did an "acceptable job" as an American and world history teacher, McCormick said. But it was as the high school's basketball coach that he excelled. "He gave us the best basketball record (19-11) in the school's history last season," McCormick said.

Shrader apparently also taught under aliases in schools in the District of Columbia; Tampa, Fla.; Albany, Ga., and Severna Park, Md. in the last few years, according to the FBI.

According to the federal grand jury indictment, Shrader, 31, and an accomplice, Kenneth B. Krohn, a Boston computer specialist, abducted Mexican businessman Bustamante at Dulles on Jan. 20, 1973, after luring him there with the promise of a profitable financial deal.

According to the indictment, Shrader then drove Bustamante in a rented car to the Virginia countryside, where Bustamante was bound and gagged and placed in a truck. The indictment alleges that Krohn then drove Bustamante in a truck to a Severna Park apartment where the businessman was forced to write letters to friends and business associates in Mexico asking for ransom money.

According to the 1975 indictment, Krohn and Shrader then killed Bustamante and "disposed of the said Raul Hernandez Bustamante's body at various locations within the greater Washington, D.C. area." According to reporter Roberson, those locations included a number of points in the Chesapeake Bay.

Krohn and Shrader were arrested in connection with the kidnaping in the spring of 1973, according to the news accounts at the time. Charges against Shrader were dropped, however, when Krohn was arrested in Boston in March, 1973. At the time, Shrader was a government witness in the case.

According to Cummings, charges against Krohn were subsequently dropped at the government's request. The prosecutor would not say why the government decided to drop the charges.

Krohn subsequently filed a civil suit against the government, Cummings aid, requesting the return of various items seized in a 1973 search of his Boston apartment. The case is now pending in the Fourth U.S. Circuit Court of Appeals.

Krohn is named as an unidicted co-conspirator in the 1975 indictment. According to Cummings, Shrader is not charged with murder in the indictment bedcause under the circumstances of the case, murder is not a federal offense.

According to the FBI complaint filed against Shrader and Krohn in 1972, the two men became involved with Bustamante in 1971 when Krohn, under an alias of Henry Blackwell, invested $300,000 in an Acapulco, Mexico, land development at Bustamante's urging. Still calling himself "Blacksell," however, Krohn eventually filed suit against Bustamante and left Mexico in 1972, according to the complaint.

According to the indictment, Shrader, calling himself Robert Graham, called Bustamante late in 1972 and persuaded him to come to Washington with the promise of a profitable business deal.

The indictment alleges that Krohn and Shrader then made sure that the Mexican businessman's first day in the Washington area was also his last.