March 2, 1972

Pres Makarios it reptd to have notified Greek Govt that he will allow a UN peace force to control Czech arms he imported in Jan and to have accepted Greek demand that he agree to shuffle hit Govt to create a 'natl unity' regime more acceptable to Greece; there has been no announcement of his reptd decision to yield on arms point, but it is confirmed by qualified sources on both sides of issue; spokesman for Makarios's Govt says weapons issue is 'at the stage of being settled'; there are no indications whether Greek Govt has made any concession to Makarios in return; qualified sources disclose that Bishops Anthimos of Kitium, Kyprianos of Kyrenia and Gennadios of Paphos have asked Makarios to resign presidency on ground it is violation of orthodox holy canons for churchman to hold temporal office of president of repub; are reptd to have already pressed Makarios to give in to demands of Greece, whose will they say should prevail in matters of natl policy concerning island's 1/2 million Greeks; it is not clear if 3 Bishops have power to depose Makarios from leadership of Cyprus Church; Makarios is said to have blocked proposals for continued ind with self‐govt for Turkish minority of Cyprus, as well as union with Greece with territorial concessions for Turkish Govt; Makarios is reptd to have sent his reply to Greece through Maj Gen Haralambopoulos; recent crisis revd

HR Speaker Albert and Repub Leader Ford protest indignantly because only Sen leaders, Mansfield and Scott, have been invited to go to China; Albert says HR will take 'appropriate action' if White House does not arrange for invs for HR leaders as well; Ford expresses regret that a 'co‐equal branch of Cong' was not included in inv; White House notes Ziegler earlier statement that inv to Mansfield and Scott came from Chou, and not at Nixon's initiative; White House appears to be mollifying Cong conservatives on Nixon's trip to China; Sens Goldwater and Allott issue statements expressing assurances US commitments to Taiwan remain sound

Nixon Adm official repts that statements on Taiwan, Vietnam and other sensitive issues in Nixon‐Chou communique, though presented as divergent declarations by each side, had actually been subjected to some intensive negotiation; US officials contend they obtained most of what they proposed by way of further contacts and exchs; Warsaw point of contact to be preserved but a new one to be estab in 2 or 3 wks; US officials see importance to Chinese of declarations of gen principles leading toward normalization of relations

Mayor Lindsay denies charges of City Council Com on Charter and Govt Operations that city would lose $60‐million because of fraud and ineptitude in Munic Loan Program; says rept took 'numbers out of the air' because com was 'looking for a headline more than trying to state accurately what program is'; holds that approximately 2% of $90‐million in loans, or about $2‐million, is at stake, which city has every intention of recouping; contends no community in country has found really good housing stabilization program for existing housing stock and, after having experimented with 6 such programs, city will continue experimenting and working; opposes com proposal to dismantle HDA, which administers loan program, and replace it with 2 new depts; chmn Sadowsky calls Mayor's response 'name calling'; says estimated $60‐million loss was based on 'HDA's own figures'

Amalgamated Transit Union strikes Transport of NJ, forcing about 70,000 NJ bus riders to find other means of transportation; co operates 2,500 buses as well as 30 trolley cars in Newark subway, which is also shut down by strike; few of commuters are badly inconvenienced because at least 5 other bus lines and 4 rrs operate between NJ points and NYC; NJ Gov Cahill deplores impact of strike on NJ but says he is powerless to intervene; greatest fear in NJ is that long strike will force state takeover of ailing co; union is seeking increased wages and improved benefits; illus