Attorney General Edwin Meese III will testify before a Senate Governmental Affairs subcommittee Thursday about his controversial partnership with a former official of the scandal-plagued Wedtech Corp. and his failure to disclose the details of that arrangement until this week.

Meese revealed Monday that he and his wife, Ursula, made more than $35,000 in profits from speculative one-day stock trades during the past two years under their "limited blind partnership" with the former Wedtech official, San Francisco businessman W. Franklyn Chinn.

The capital gains, plus $6,000 in interest, gave the Meeses a return of more than 81 percent during a two-year period on an initial investment of $50,662, according to the records Meese and his lawyers made public.

The disclosures came after criticism from members of Congress of Meese's handling of his responsibilities under the Ethics in Government Act and its requirements for annual financial disclosure by high-ranking government officials.

Rep. Gerry Sikorski (D-Minn.), chairman of a House Civil Service subcommittee, said there had been "a frightful collapse of ethics within the attorney general's office." Sen. Carl Levin (D-Mich.), chairman of the Senate Governmental Affairs oversight subcommittee, scheduled a hearing because of "the cloud" over Meese's actions. David Martin, director of the Office of Government Ethics, which administers the ethics laws, also will testify.

Meese "certainly is willing to testify," Justice Department spokesman Terry Eastland said yesterday. "He's disclosed everything under the sun that's possible. I can think of no more complete, exhaustive disclosure in the history of the western world, or even in Washington, D.C."

Meese and his wife entered their "limited blind partnership" with Chinn on May 23, 1985, less than a month after Chinn had become a consultant for Wedtech, a Bronx, N.Y.-based defense contractor now under intensive federal investigation on bribery and related charges. Federal ethics laws require officials to report holdings and income "from a trust or other financial arrangement" unless it is specifically approved as a "qualified blind trust" by the Office of Government Ethics.

Meese did not seek OGE approval, but at the same time failed to list the investments Chinn made for him in his annual reports to OGE.

Meese's disclosure "is better late than never," Levin said, "but it raises as many questions as it answers." For instance, Levin said, Meese sent out a May 24, 1985, memo to Justice Department subordinates to explain his conflict-of-interest policy, but failed to list the just-entered partnership with Chinn among his holdings.

The conflict-of-interest memo contained a list of stocks that Meese claimed to have just sold. "I am accordingly no longer disqualified from participating in any matter involving those entities," Meese said at the time.

The records released Monday show that the Meeses still own securities in Santa Fe Southern Pacific, Sterling Drug, Safeway Stores and the Los Angeles Housing Authority, all of which they said they had sold. Meese's 1985 memo said an aide would keep the list of holdings "current" but it apparently was never revised.

One of Meese's lawyers, James Rocap, said yesterday that the list was "a minor thing" and that Meese was under no obligation to keep it up to date. Rocap said the important thing was not what subordinates know, but that Meese "is the one that's got the knowledge {of when there's a conflict of interest}. He knows."

Rocap said the Meeses still own the four securities because they couldn't locate the certificates. He said they did sell most of their Safeway and Sterling Drug holdings in 1985 but realized they must own still more when dividend checks kept arriving in the mail.

Now under investigation in the Wedtech scandal himself, Meese said Monday that Chinn did not invest any of the Meeses' funds in Wedtech or any subsidiaries, but bought and sold stocks in a series of "same-day trades" during the past two years in 23 different companies.

Meese calculated his investment with Chinn at about $60,000, but the businessman had only about $50,000 at his disposal. The other $10,000 was apparently tied up in telephone company stock certificates that Meese said he had intended to turn over to Chinn, but also was never able to find.