October 18, 1975

Pres Ford denies aid to NYC; Treas Sec William E Simon says that Adm has open mind on Cong action, int; White House press sec Ron Nessen compares NYC to 'wayward daughter hooked on heroin'; says you do not give her money to support her habit but maker her go cold turkey to break habit; Ford rejected advancing payments of Fed funds due to NYC, including $250-million in welfare and Medicaid funds and $63-million in revenue-sharing due during next qr beginning Jan; Simon insists NYC and NYS have means to prevent default; Pres Ford's Econ Policy Bd discusses situation; Repr E I Koch and Mayor M Landrieu comment (M)

UN Soc Humanitarian and Cultural Com, 70-29, adopts Arab-inspired draft of resolution that will equate Zionism with racial discrimination (S)

article on anxiety during night before UFT saved NYC from default; illus of Donna Shalala accepting checks in behalf of MAC; illus of Reuben Mitchell, Bernard Goldberg and Joseph Shannon, members of teachers retirement system who voted on bond purchase (M)

article on tension in Portugal because of persistent, unanswered question over whether country will take road to some form of dem or to authoritarianism, and whether decision ultimately will be made peacefully; illus (L)

HUD Dept, under pressure from GAO suit challenging impoundment policies, says on Oct 18 that it will release $264.1-million over next 2 yrs to help moderate-income families buy housing; Sec Caria A Hills repts that families earning $9,000 to $11,000 a yr can obtain mortgages of $21,600 to $28,800 at subsidized interest rate of 5%; project was frozen by Pres Nixon in Jan 73; new program will differ in several ways from suspended one; down payments will be $1,500 to $2,000, as against $200 for old program; program is aimed at more well-to-do families; no more than 30% of units in new subdiv may be subsidized; Hills comments; sees about $6.5-billion in construction activity generated by program; Natl Assn of Home Bldrs pres J S Norman hails program resumption (M)