February 6, 1975

NYC Econ Development Admr Alfred Eisenpreis, in int on his first yr in office, announces city and Italian builder Renzo Zingone have signed lr of intent under which Zingone would erect complex of factory bldgs in Penn Central's Harlem River yds, creating 2‐million sq ft of mfg space with potential of 5,000 new jobs for impoverished South Bronx area; full details of project, which could cost over $40‐million, will be released by Mayor Beame; city must acquire 100‐acre Penn Central yd and make some 3‐million sq ft available to builder; Eisenpreis sees project indicating city's econ position is improving; also cites: his agency's ability to head off loss of 7,000 jobs last yr and creation of 3,000 new jobs; decisions of several mfrs to remain here after considering moves to other communities; growing cooperation between business community and city govt; revival of film and TV production in city; moving of econ development to top of city's priorities list; concedes unemployment rate of 8.5% is serious problem and admits his agency is still far from reversing shrinkage of job opportunities; details other encouraging signs; Eisenpreis illus; map of Penn Central yds (L)

Pres Ford tells Prime Min Bhutto that US will give ‘active consideration’ to lifting embargo that has blocked Pakistan from purchasing US mil hardware for nearly 10 yrs despite Indian pressure to maintain embargo; Bhutto says he does not want to amplify Ford's statement for fear of ‘complicating situation,’ news conf; says he wants to buy ‘exclusively defensive weapons'; says if US meets his requirements for conventional arms, he would put his nuclear reactors under internatl safeguard program to prevent secret production of nuclear weapons; White House spokesman Ron Nessan says US would not contribute to fueling arms race in South Asia if it lifts embargo; says US would not alter current strategic balance in area and would continue to encourage process of reconciliation in area; illus of Ford and his wife escorting Bhutto and his wife (M)

Vice Pres Rockefeller's proposal that 2 of his top assis, James Cannon and Richard L Dunham, be put in charge of White House Domestic Council and reorganize its functions is running into resistance on Pres Ford's staff; Rockefeller would have council turn its attention to proposing innovations that Pres would consider for making long‐range policy; Rockefeller plan would, in effect, give Vice Pres control over important segment of Pres staff; make‐up and duties of council noted; present council dir Kenneth R Cole Jr has resigned effective Mar 2 and James H Cavanaugh, council's deputy dir, is temporary head; council was established by Pres Nixon in ‘70 (M)

Robert J Schmertz, principal owner of Boston Celtics, is indicted on charges of bribing public official to obtain approval for construction of $200‐million retirement village; Schmertz is charged with conspiring with Donald Safran, former owner of Lakewood, NJ, real estate and ins co, to pay over $30,000 in bribes during ‘71 and ‘72 to pave way for construction of 5,000‐unit Leisure Village West in Manchester Township; according to indictment, bribe money was paid by Schmertz's co, Leisure Technology Corp, to Joseph S Portash, former Ocean County freeholder; corp also was indicted; Schmertz denies any wrongdoing; grand jury says money paid to Portash was funneled through Madison Agency Inc and Donald Safran Inc; Schmertz por (M)

Gov Carey names Richard Ravitch chmn of NYS Urban Development Corp and names Orville H Schell to head investigation into both corp's specific problems and gen question of financing state housing construction by ‘moral‐obligation’ bonds; also announces that Edward J Logue, corp pres since ‘68, would resign Feb 6 and be placed on interim basis by present exec vp John G Burnett; Schell, who will be paid state comr's salary of $47,800 per yr, will appt up to 3 other members for his comm; Ravitch will serve without pay; Schell and Ravitch biogs; illus of Carey with Ravitch and Schell (L)