The Michigan Supreme Court will not prevent a judge from turning over a reporter's notes of an interview with a murder case defendant to a prosecutor.

In a 4 to 3 decision, the court said it was "not persuaded that the court should review the questions presented at the current stage of proceedings."

The case involving the Traverse City Record Eagle, is regarded by several organizations, including the American Civil Liberties Union, as a test of press freedom. The newspaper contended turning over the notes would in effect make the newspaper an arm of the prosecutor's office.

In St. Paul, Minn. A federal judge has dismissed a $17.2 million libel suit brought by two Laetrile advocates against Time Inc. and U.S. News & World Report.

Donna W. Schuster and Donald E. Hanson, both of Rochester, Minn, had claimed that articles in the news magazines would be understood to refer to them, even though they were not mentioned by name.

A June 1976 issue of U.S. News & World Report carried a discussion of the Lactrile controversy, entitled, "What the Health Quacks are Peddling Now." Time magazine reported on federal indictments brought by a grand jury in San Diego May 1976. Nineteen persons, including Schuster and Hanson, were charged with smuggling Laetrile.

The suit claimed the two were defamed because they are Laetrile distributors.