BASEBALL Milwaukee Brewers -- Agreed to one-year, $1,025,000 contract with LHP Teddy Higuera, a $690,000 raise over his 1987 salary, plus $175,000 in incentives, averting arbitration hearing. Los Angeles Dodgers -- RHP Orel Hershiser (terms undisclosed) and IF Dave Anderson (compromise $262,500) agreed to one-year contracts, avoiding arbitration. Hershiser asked $1,250,000, Dodgers offered $950,000; he made $800,000 last year. New York Mets -- Agreed with LHP Sid Fernandez on compromise one-year, $580,000 contract, canceling arbitration hearing. He made $308,000 last year. Chicago White Sox -- Reacquired IF Roy Smalley from Minnesota Twins, who exercised option to transfer him back; Chicago may now deal him to New York Yankees. Pittsburgh Pirates -- Compromised on one-year, $450,000 contract with RHP Bob Walk. Cincinnati Reds -- Signed SS U.L. Washington for AAA Nashville.

COLLEGES Kickoff Classic -- Selected Texas A&M for 1988 football opener in East Rutherford, N.J., in late August. Possible opponent: Pitt.

CORRECTION High School Basketball -- An erroneous record was listed for the Lee boys basketball team, No. 12 in Monday's ranking; it is 15-2. A victory short were No. 9 Gonzaga (16-3) and No. 18 Maret (13-6). H.D. Woodson girls (No. 9) are 18-2.