October 3, 1975

URUMCHI, China, Sept, 27—This is the time of the 26th anniversary of the People's Republic of China, but for the eight million people of Sinkiang it is also the 20th anniversary of its founding as an autonomous region where 12 minority peoples and ethnic Chinese live together.

Fed Reserve Bd Chmn Arthur F Burns tells Cong that NYC financial crisis, if not resolved, could injure recovery process now underway in natl econ, HR Budget Com hearing; statement goes beyond anything Burns had previously said on matter and also contradicts repeated assertions of Treas Sec William E Simon and Pres Ford, both of whom have denied that there could be serious natl repercussions even if city were to default on some securities (S)

NYS Controller Levitt agrees to use $250-million from 2 state employe pension systems to help tide city over cash shortages in Oct and pledges to ask another state pension system, not under his control, to help city next mo; Gov Carey meets in Albany with legis leaders to brief them on city's and state's fiscal problems; illus (M)

HR members who voted against lifting of US arms embargo switch their vote on Oct 2 and support Ford Adm request for easing of original action because embargo failed to encourage Turkish-Greek settlement of Cyprus situation; in key preliminary vote won by Adm, HR rejects 229-187, amendment by pro-Greek Reprs that would have delayed resumption of weapons deliveries to Turkey until Ford certified that 'significant progress' had been made toward solving problem of 180,000 refugees on Cyprus; approved bill would in part permit Turkey to buy through commercial channels other arms in US as long as it does not violate cease-fire in Cyprus (M)

HR Internatl Relations Com clears way on Oct 2 to vote formal approval for Adm's request to station 200 US civilian technicians in Sinai passes to help monitor recent Israeli-Egyptian accord; agrees on final draft of joint resolution that permits technicians to staff early-warning stations in Gidi and Mitla Passes; delays final vote until Oct 3 for technical reasons; HR is expected to vote by Oct 9; Sec Kissinger meets twice with Sen Foreign Relations Com to try to overcome dispute arising from com's insistence on disclosure of all commitments made to Israel and Egypt during Sinai agreement negotiations; Sen Frank Church says Kissinger on behalf of Pres Ford certified that fall commitments made by US that are regarded as binding have been submitted to com; says it is still not clear what will be made public; Sen John J Sparkman says Kissinger began going through 4 secret documents already shown com, answering questions on his interpretations of documents; Kissinger says that not everything in documents should be regarded as binding; Sen com must still decide what language of joint resolution should say and how to disclose private documents, which have already been leaked to press; State Dept spokesman Robert L Funseth denies NY Times rept that changes were made intentionally in secret documents sent to Cong to trace future leaks (M)