February 25, 1975

Gov Carey, commenting on expected default by NYS Urban Development Corp on $104.5‐million in bond‐anticipation notes and discussing possible ways to bail out once‐powerful state agency, asserts that he has made judgment that $500‐million request to Legis cannot be made; holds state is hard‐pressed enough, and citizens need no new burdens ‘beyond what we have already asked of them’ (S)

Greek Govt announces that it has placed its troops on alert in Athens region after thwarting ‘conspiratorial movements’ made by followers of mil Govt that collapsed in July ‘74; provides few details, but asserts that conspiracy had consisted of ‘foolish movements’ by ‘very few’ officers; denies rumors of widespread unrest within armed forces and says that ‘at no time’ had conspiracy threatened to disturb public order; news services rept that 28 officers have been arrested in plot in various parts of country; quoting usually reliable sources, services describe conspirators as ‘Qaddafi‐like group,’ reference to Libyan leader Col Muammar el‐Qaddafi, who preaches extreme brand of nationalism; repts say Govt seized typewritten declaration that plotters intended to read to nation after seizing radio station; Govt declares that situation is under ‘full control’ throughout country; persistent but unconfirmed repts say that plotters had been centered in tank training unit at Goudi, in suburb of Athens; tanks from Goudi provided main mil support for coup staged by dissident cols on Apr 21 ‘67; Govt official says everything was in preparation stage but Govt has to act swiftly because it could not play with such matters; recent Govt concern over possible restiveness within armed forces revd; Defense Min Averoff‐Tossizza said in recent int that while mil junta failed to win over most Greek youth, it had succeeded in ‘brainwashing’ many of youth recruits who entered service during period of mil rule; added that brainwashing made young men susceptible to junta's assertions that it had saved country from civil disorder and Communist take‐over; many officers were reptd dismayed at Govt's decision to grant legal status to Communist party and allow Communists to play role in country's pol life; discontent has been aggravated by Premier Constantine Caramanlis's refusal to go to war with Turkey over Cyprus (L)

Long‐awaited Fed plan to revitalize 6 bankrupt rrs serving Northeast and Midwest calls for initial abandonment of 6,200 miles of money‐losing freight routes, incorporation of 15,000 miles of remaining routes into new system beginning next yr, formation of 2 other, competing freight systems fashioned from still‐flourishing lines, and re‐routing rail freight between Boston and Washington to clear tracks for high‐speed trains; involves creation of new $2‐billion Consolidated Rail Corp (Conrail) to take over freight operations of 6 troubled rail lines and make them financially successful; plan also raises, as alternative to proposed system of reorganization, possibility of nationalization of bankrupt lines; Sens James Buckley and Richard S Schweiker, several delegations and state officials score proposal (M)

Head of Moreland Act Comm Morris B Abrams, special NYS comr investigating nursing homes, says he is considering requesting state legis that will levy triple damages on operators who engage in Medicaid frauds, conf with reporters and editors of NY Times; describes Medicaid system as ‘a patchwork, a mess’; cites as 1 of system's irrationalities fact that operators who perpetrate frauds are required to refund money without interest; says comm probably will hold its 1st hearings in about 2 wks, but will not initially interrogate nursing home promoter Bernard Bergman; says he is torn between desire to expose the ‘illogic’ of present system and need to propose reforms in time for enactment by current session of Legis; says, in addition to triple damages, that he is considering unification of Medicaid adm, which would require that nursing‐home books be certified by ind accountants ‘at risk of their professional lives,’ full disclosure of ownerships and freer access by community to nursing homes; queries whether Atty Gen ‘shouldn't have an obligation to prosecute,’ noting that no nursing‐home operator in state had been prosecuted for Medicaid fraud and that several accusations of fraud by State Health Dept have languished among enforcement agencies; acknowledges that existing laws require prosecution in fraud cases, but maintains nursing‐home indus apparently has more power than ‘those whom the Legis is supposed to protect’; says public hearings into nursing home faurds will be open to public, execept when exploratory questioning is needed to determine whether testimony is relevant, and that hearings may be televised, unless comm grants pica of witness against discomfort or harassment by lights or cameras; other rules governing hearings described; Abrams appts Princeton Univ Prof Sidney Davis as special comm counsel; David illus (L)

Amer Bar Assn adopts new rules that will help more people obtain legal ins under plans similar to med ins offered by Blue Cross, revising previous rules that restricted ways in which lawyers could participate in prepaid ins programs; allows lawyers to participate in type of programs favored by consumer groups and labor unions, as well as more expensive programs favored by bar; closed panel and open panel plans discussed; new rules continue ban on law firms’ setting up own programs; seen improving legal services to middle class (M)