November 26, 1975

Major NYC banks and teachers union, after long day of negotiations with NYS Gov Carey on Nov 25, shift stands and agree to join complicated 3-yr plan to provide cash and ease debt for NYC; banks drop demand for balanced state budget before they agree to extend maturities at lower interest on $1.6-billion in NYC and Munic Assistance Corp securities they now hold; earlier, union trustees on Teachers Retirement System vote to buy $860-million in city and MAC securities over next 3 yrs after commitment from Carey to submit legis to protect them from lawsuits charging breach of fiduciary responsibility; trustees won other concessions; Carey and MAC chmn Felix G Rohatyn expect word from Washington soon on plea for $2.5-billion in Fed aid; 'exch offer' whereby owners of $1.6-billion in maturing city bonds will be offered long-term MAC bonds instead deferred for 1 day because of delays in assembling various pieces of financial pkg (M)

NYC Mayor Beame, in wake of revolt, authorizes hiring of 69 correction officers with available Fed and state-funds and immediate Budget Bur study of hiring others rather than use of city funds for overtime; Beame also announces that Bronx House of Detention for Men will stay open for another mo instead of closing on Nov 26 as scheduled and that he is discussing with Fed Judge Morris E Lasker on possible temporary reopening of Manhattan House of Detention for Men; city's Correction Comr Malcolm and Correction Officers Benevolent Assn head Harold Brown comment (M)

Conn Gov Ella T Grasso, to help ward off projected budget deficit of more than $80-million, presents program of new austerities that would stretch work wk of state employes from 35 hrs to 40; series of new savings she proposes would also reduce fees for med services to welfare recipients and cut other state services; under plan for longer work wk, state's 40,000 employes would begin to collect overtime after 40 hrs rather than 35; Grasso holds step could save as much as $10-million by next July in overtime pay; proposal brings angry objections of Conn State Employes Assn exec bd; state has been squeezed by persistent unemployment, now running in excess of 10%, soaring cost of welfare and other soc services and by lagging receipts from 7% sales tax; Grasso offers proposal that would absorb $30-million soldiers, sailors and Marines fund into gen budget, and offer new laws to guarantee that none of $2.3-million in benefits paid by fund to veterans each yr would be lost; also proposes that all earnings from Instant Lottery in excess of $7-million go into state's gen fund, limiting amt that would be spent on educ; her por (L)

The State .Court of Appeals yesterday unanimously upheld the constitutionality of the “no fault” ,automobile insurance law, Page 37.

Paratroopers and other regiments stage open rebellion against Govt and Govt mil leaders take strong action to crush revolt; paratroopers capture 4 Air Force bases and seize comdr Gen Jose Anibal de Pinho Freire, who remained loyal; commando forces supporting Govt recapture 3 of bases and set Gen Pinho free; Pres Francisco da Costa Gomes has proclaimed partial state of siege of indefinite-period; commandos also seize natl TV station, which had been occupied by leftist troops; revolt is seen as part of concerted drive by Portugese Communist party and extreme leftist allies to seize power from Govt, headed by Premier Jose Batista Pinheiro de Azevedo; while Govt forces appear to be gaining upper hand, there have been calls from Communist party and allied groups for gen 'mobilization' in support of insurgent paratroops; rebellion started when High Revolutionary Council announced nomination of Capt Vasco Lourenco to replace Brig Gen Otelo Saraiva de Carvalho as comdr of Lisbon region; ousting of Carvalho, for Communists and extreme left, was major blow because he had openly allied himself with drive to overthrow Pinchiro de Azevedo Govt and to set up new 'authentic left-wing govt'; map; illus (L)