While their husbands charted the course of world events, five first ladies were treated to a dazzling display of fashion - from supreme funk to queenly elegance.

Off-the-shoulder and on, above the knee and below, models paraded 13 collections by Canadian designers before the summit spouses and some 300 business magnates and community leaders.From silk to brocade, from voile to burlap, the models sashayed down the runway at the Royal Ontario Museum to rhythmic music and pealing bells.

Nancy Reagan, flanked by Hannelore Kohl of West Germany and Mila Mulroney of Canada, drew almost as much applause as the models when she got up, leaned across the runway and retrieved a glittering earring. She then handed it to the model who had dropped the jewel.

Naoko Takeshita of Japan and Anna Maria De Mita of Italy exuded smiles only when two children's wear collections were shyly displayed by little girls as young as 5.

Mrs. Reagan raised her eyebrows at some of the more outrageous costumes, like a jacket with protruding cloth flowers and vegetables, or a gold lame outfit with snakelike strips slithering to the ankles.

Canadian cover girl Monika Schnaarre displayed a magnificent ankle-length black-and-red satin creation by Alfred Sung, one of the country's best-known designers. Another model strolled down the runway in a full-length white Canadian mink coat.

Men's fashions were also on display. One collection of 10 tuxedos drew giggles from Mrs. Reagan and Mrs. Kohl, who huddled, their heads close, appearing to discuss the models.

At the show's finale, five little girls handed each first lady a bouquet of flowers and were rewarded with kisses and hugs.